Greenhouse Success Stories Podcast sponsored by Harnois Greenhoues - Episode 3
The greenhouse vegetable sector in Ontario, home to thousands of acres of production and a vital part of Canada’s food-supply chain, is facing unrelenting policy and regulatory pressure. As Richard Lee, Executive Director of OGVG, emphasizes, these pressures are creating a rising barrier for Ontario greenhouse growers, threatening competitiveness, growth and investment.
The Stakes for Ontario Greenhouse Growers
Ontario greenhouse growers are part of a robust industry: the province is recognized as the largest concentration of high-tech vegetable greenhouses in North America.
The industry contributes billions in farm-gate value and supports tens of thousands of jobs.
However, Lee warns that growth has stagnated and, in some cases, is regressing because of policy burdens. He observes that the sector’s upward trajectory has been blunted by federal, provincial and municipal policies that impose new costs or restrict essential inputs.
Key Policy Pressures Facing Ontario Greenhouse Growers
1. Carbon Taxes & Rising Input Costs
Ontario greenhouse growers are challenged by increasingly stringent regulations on energy and carbon. Lee cites carbon tax liabilities and rising utility and wastewater charges as examples.
2. Trade & Export Vulnerabilities
The export market is critical for Ontario greenhouse growers. A large portion of production goes to the U.S. market; tariffs, trade disruptions, or regulatory misalignment can deal major blows to profitability. For example, Lee noted that short-term tariffs cost the Ontario sector over $6 million in a matter of days.
3. Regulatory Red Tape & Limited Crop Protection Tools
Lee points out that growers face delays and restrictions in accessing pest-control tools, and that the regulations are not always aligned with those of major trading partners. These regulatory inefficiencies increase costs and hinder innovation for Ontario greenhouse growers.
4. Infrastructure & Municipal Charges
Locally, municipal development charges (water, wastewater, property) and other site-specific costs are accelerating. Ontario greenhouse growers in certain regions are seeing per-acre charges escalate dramatically, hampering expansion.
Why These Pressures Matter for Ontario Greenhouse Growers
When policy and cost burdens increase without corresponding support or incentives, Ontario greenhouse growers face diminished margins, reduced ability to reinvest, and stronger competition from jurisdictions with lower overhead. As Lee argues, if Canada’s policymakers favour other sectors (e-mobility, automotive) while agriculture lags, then greenhouse growers lose ground.
The compounding pressures mean that some investors and producers may decide to expand outside Canada or postpone growth decisions entirely. That’s a risk to long-term food security, local jobs and greenhouse innovation in Ontario.
What Helps Mitigate These Challenges?
Lee and OGVG are advocating strongly for reform and support. Some of their suggestions include:
Streamlining regulatory approval for crop protection tools and aligning them with major trading partners.
Reducing duplicative administrative burdens and regulatory costs so that Ontario greenhouse growers remain competitive.
Ensuring that municipal and regional charges don’t erode the viability of greenhouse expansion because when infrastructure costs are too high, the business case for Ontario greenhouse growers weakens.
Strengthening government support and recognition for greenhouse agriculture so that the sector’s contribution to food security and rural economies is reflected in policy and investment decisions.
These efforts aim to enable Ontario greenhouse growers to reinvest, innovate (e.g., in low-carbon production methods), and maintain competitiveness in global markets.
Critical Moment for Ontario Greenhouse Growers
For Ontario greenhouse growers, the message is clear: the sector stands at a critical juncture. With mounting policy pressures, rising costs and global competition, the ability to maintain growth, innovation and profitability is under threat. Richard Lee’s advocacy highlights that if Ontario greenhouse growers are to sustain their role as leaders in controlled‐environment agriculture, the policy environment must evolve not just to protect them, but to allow them to thrive.
By spotlighting the challenges posed by increased regulation, trade risks, and municipal cost escalation, this issue calls for coordinated action from growers, industry associations, and policymakers. For any party invested in Ontario’s greenhouse horticulture future, the time to act is now.