Frederic Serre
The Advocate
Canada’s farming and food industry sector is set to get a $2-billion boost, thanks to Farm Credit Canada (FCC), which made the announcement in Regina on May 30.
The investment, spread out over five years, will go towards developing innovative devices, instrumentation, research, and methodologies designed to improve efficiency, productivity and sustainability.
The funding will come through FCC’s investment arm, FCC Capital, launched in 2024 by the Crown corporation and agricultural term lender created in 1936 to assist farmers.
According to the FCC, while the money will be directed toward technology and practices designed to improve farming and the food industry, the goal is also to expand into international markets.
“Canada’s economic future requires an agriculture and food industry leading the world in innovation and productivity,” said Justine Hendricks, FCC president and CEO. “However, until now, investment dollars have been scarce and have not scaled to meet the increasingly sophisticated needs of the sector. Through this investment, FCC is delivering on its commitment to be a catalyst and support innovation and productivity in one of Canada’s most important and investable sectors.”
The announcement comes at a good time, says the FCC, because Canada’s ag-tech sector “is lagging. In 2023, Canada’s venture capital investments in the sector were cited at approximately $270 million, 10 times below the United States when adjusted for population,” Hendricks said.
“This low level of investment puts Canada at a strategic disadvantage,” she added.
FCC Capital executive VP Darren Baccus says that “with this $2 billion allocation, FCC will continue its long history of supporting and partnering with the Canadian ag and food industry to offer greater security and sustainability in a highly competitive global market.”
Graeme Millen, FCC Capital’s vice-president of strategic finance and business development, echoed Baccus’ view of Canada’s ag-tech sector struggling, but said he is encouraged with what the future has in store for farmers and the food industry.
“Over the last eight months we’re seeing an incredible amount of interest from international and really high-calibre investors in agriculture and food as a category and Canada as a market,” Millen said. “It is truly a generational opportunity for Canada to respond to the market need … the global demand for more food.”