Better Investment Could Boost Canada Farm Sector
A new report from Farm Credit Canada (FCC) highlights how stronger productivity growth could bring major economic benefits to Canadian agriculture. The report explains that if productivity returns to historic levels of two per cent annually, farmers could gain up to $30 billion in additional income while Canada’s economy could grow by $31 billion, creating nearly 23,000 new jobs.
For more than 50 years, Canada has stood out as a global food leader through better management practices, improved input use, and greater technological innovation. However, the report warns that productivity growth has slowed in recent years, which may affect farmers’ competitiveness and Canada’s ability to meet future food needs.
“Canada’s agricultural productivity growth has consistently outpaced other G7 countries for more than three decades, showing the strength and adaptability of our producers,” said J.P. Gervais, executive vice-president strategy and impact at FCC. “Even so, our growth has slowed, turning that around will take continued investments to spur innovation, and smarter ways of working to help producers improve efficiency and stay competitive in a fast-changing global market.”
FCC leaders say that Canada’s agriculture sector has a strong track record of adaptability. They believe growth can accelerate again through better investment, improved efficiency, and stronger support for innovation. The report points out that low investment in research and development and slower venture capital support for ag tech are key barriers that must be addressed. Every dollar invested in agricultural innovation can return $10 to $20 over time, showing the value of increased funding.