Canada’s agricultural sector has long been a tale of untapped potential. The country boasts world-class agricultural and agri-food scientists, yet the journey from groundbreaking research to thriving businesses has often been a rocky one. Farm Credit Canada (FCC) is stepping up to change this narrative, pledging a substantial $2 billion investment to fuel innovation within Canada’s agriculture and agri-food industries over the next six years.
This significant commitment, announced last week, aims to bridge the gap between innovative ideas and commercial success. The funds will be channeled through FCC Capital, a subsidiary created by the federal crown corporation in 2023. “At FCC, we’re uniquely positioned to provide catalytic capital and work with stakeholders to source compelling investment opportunities,” said Darren Baccus, FCC’s executive vice-president. The goal is to attract additional capital, amplifying the economic impact and fostering a more robust agri-tech ecosystem in Canada.
The need for such investment is clear. While Canada has made strides in agricultural innovation, the flow of venture capital into the sector has been lackluster. In 2023, venture capital investment in Canadian ag tech was a mere $270 million— a figure that pales in comparison to the United States when adjusted for population. Globally, investment in agri-food tech has seen a decline, dropping from $31 billion in 2022 to $16 billion in 2024, according to agfunder.com. This trend underscores the urgency for targeted investments to keep Canada competitive on the world stage.
FCC Capital is not just throwing money at the problem; it’s taking a strategic approach. Led by Graeme Millen, who joined in 2024, FCC Capital is shifting from indirect investments through third-party funds to direct investments in promising ag tech companies. This hands-on approach allows FCC to take calculated risks and drive meaningful impact. For instance, last year, FCC Capital invested in Catalera BioSolutions, a Vancouver-based firm producing bio-pesticides and other biologicals for agriculture. In its inaugural year, FCC Capital completed nine direct investment deals totaling $170 million, invested in three new funds, and added a business accelerator to its portfolio.
The implications of this $2 billion commitment are far-reaching. For Canadian farmers and agri-food businesses, this means better access to cutting-edge technologies and innovations that can enhance productivity and sustainability. For the broader economy, it signals a potential boost in job creation and economic growth, as successful ag tech startups scale and expand. Justine Hendricks, FCC’s president and CEO, emphasized the importance of this investment: “Canada’s economic future requires an agriculture and food industry leading the world in innovation and productivity. 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.”
Moreover, this initiative could help Canadian agri-food businesses break into international markets, which have historically been more challenging to penetrate than domestic ones. With the right support and resources, companies in Saskatoon, Kelowna, or Halifax could soon find themselves competing on a global scale, selling their innovative products to customers in Vietnam and beyond. As FCC takes this bold step, the hope is that Canada’s agricultural sector will not only catch up but also set new benchmarks in innovation and productivity, securing its place as a leader in the global agri-food industry.