Ontario is investing an additional $30 million to support businesses, workers and communities dependent on the province’s forestry sector, the government announced Friday.
The province said the funding will build and maintain more forestry access roads and provide immediate support for sawmills to find new markets for their woodchips. The investments are intended to strengthen Ontario’s forestry sector, create jobs and increase competitiveness in the face of increased U.S. softwood lumber duties and the threat of tariffs.
“Forestry is a pillar of our economy and forest sector businesses are the foundation of strong, thriving communities across Ontario,” said Kevin Holland, associate minister of forestry and forest products. “Our government is backing our province’s forest sector to ensure it is resilient and strong in the face of U.S. trade threats, and we’re calling on the federal government to join us in standing up for Ontario’s forestry workers.”
The province said $20 million is being invested through the Provincial Forest Access Roads Funding Program, bringing total funding for the program to more than $79 million this year. The Crown forest road network provides access for businesses to harvest and transport wood, and is also used by residents, hunters, anglers and tourists.
The government is also investing $10 million in the Ontario Sawmill Chip Support Program to help sawmills find new markets for woodchips in areas such as energy production or alternatives to single-use plastics. Officials said this support will protect sawmill workers while helping the sector adapt, compete and grow in a changing global market.
“Today’s announcement is just one more example of the record investments Ontario is making to protect the workers who depend on the good-paying jobs in the forestry sector,” said Mike Harris, minister of natural resources. “We have always stepped up to support forestry, and this additional $30 million in provincial funding will help build a stronger, more adaptive and resilient forestry sector in Ontario.”
Since 2018, Ontario said it has invested over $72 million through the Forest Sector Investment and Innovation Program and nearly $50 million through the Forest Biomass Program to help businesses expand into new markets, advance innovation and make the industry more competitive and resilient.
The province said the forestry sector generated close to $22 billion in revenue in 2023 and provides about 128,000 jobs, including many in Indigenous, rural and northern communities. Wood produced from Ontario’s Crown forests is sustainably sourced and renewable, the government said.
Industry leaders welcomed the announcement. Ian Dunn, president and CEO of the Ontario Forest Industries Association, said the Forest Access Roads Funding Program is a successful public-private partnership that provides critical infrastructure supporting recreational users, Indigenous communities, emergency services, utilities and industries such as mining and forestry. “For every public dollar invested into the program, the forest sector invests three,” he said.
George Pirie, minister of northern economic development and growth, said the investment will strengthen Northern Ontario’s forestry sector. “With this $30 million investment, Ontario is driving economic growth and creating long-term opportunities for workers and communities,” he said.
