Canada’s position as an agriculture exporting superpower is well-established, but a recent report emphasizes that the nation should also take the lead in agriculture technology. The report, created by the Arrell Food Institute at the University of Guelph and the Food and Agriculture Institute at the University of the Fraser Valley, outlines four strategic recommendations aimed at bolstering the country’s ag tech sector. This initiative is crucial as Canadian farms grapple with labor shortages and increasing pressure to enhance productivity.
One of the primary challenges highlighted in the report is the significant gap in venture funding throughout the agriculture technology development process. Despite Canada producing substantial intellectual property and primary research in agriculture, the pathway from innovation to market has historically been fraught with obstacles. Erin Doherty, strategic initiatives lead at the Arrell Food Institute, points out that the existing complexity in accessing funding and support services can overwhelm entrepreneurs. She emphasizes the need for a streamlined approach: “What we want to see is just a front door. You arrive here and then it’s someone’s responsibility to help connect all those different layers of funding.”
The report identifies that while Canadian entrepreneurs bring valuable skills and innovative ideas, they often face hurdles in scaling their businesses. This is particularly pronounced in agriculture, where testing new products requires significant time and relationship-building with farms. Doherty notes that tech entrepreneurs outside of agriculture can easily find numerous testers for their products, while ag tech innovators struggle to make those essential on-farm connections. There is a clear demand from producers for technology that can demonstrate a return on investment, yet the gap between producers and innovators remains a barrier.
To address these challenges, the report outlines four strategies: helping ag tech companies scale, training the next generation, reducing investment risks, and mobilizing applied research. For scaling, the report suggests creating partnerships that focus on integrating technical skills with strategic commercialization efforts. It also advocates for the establishment of food processing facilities that can provide local testing opportunities for new technologies.
Training future entrepreneurs is also critical. The report calls for interdisciplinary programs that combine science, agriculture, business, and funding knowledge, as well as micro-credential programs for flexible learning. This approach aims to raise awareness of career opportunities in agriculture, particularly among underrepresented groups.
Reducing investment risks is another focal point. The report proposes a Canadian version of the Netherlands’ Top Team approach, which could bring together representatives from government, academia, and industry to foster innovation. By exploring public-private partnerships and patient capital options, the report aims to create a more conducive environment for later-stage companies to scale.
Finally, mobilizing applied research is essential for bridging the gap between innovation and practical application on farms. The report suggests that innovative research incentives, such as challenge-based prizes and demonstration projects, could enhance the dissemination of ag tech knowledge.
The study, conducted in late 2023 and early 2024, involved consultations with 100 experts from various sectors across Canada, underscoring the collaborative effort needed to strengthen the ag tech landscape. As Canada looks to the future, the integration of these strategies may not only enhance its agricultural productivity but also solidify its status as a leader in agriculture technology innovation.
