Canada’s investment in climate-smart agriculture lags global peers

The world’s top food producers are on the move. Making sustainable agriculture a strategic priority, Canada’s peers are laying the foundations for formidable climate-smart food supply chains backed by sizeable funding and bold policy measures.

Amid these dramatic investment and policy shifts, a pivotal moment is emerging for Canadian agriculture. The sector risks falling behind if Canadian governments don’t match their competitors in supporting producers with the funding and policy tools to grow more food with fewer emissions.

Canada is already falling behind. The agriculture sectors in the U.S., EU, Australia and China get roughly three times the climate funding that Canada provides to its industry. Yet the expectations placed on our farmers are growing: to produce more (in increasingly adverse weather conditions), to cut emissions and to help boost global food security.

We began to explore the opportunities around climate-smart agriculture last year, in the midst of twin global crises over food shortages and climate shocks. Since then, our research teams have spoken with more than 500 farmers and food producers, to gain a better understanding of what practical policies could make a difference now.

The right policy measures will help strengthen our economy, soften geopolitical threats and accelerate emissions reductions.

Ottawa and the provinces will need to transform their approach to agriculture policy to protect a sector that accounts for 7% of national GDP—with huge potential for further growth.

This report lays out nine polices across five areas—soil, methane, fertilizers, talent & technology, and consumers—that can slingshot Canada’s agriculture sector to the forefront of the next green revolution and compete globally.

Currently, Canada’s ag policy and funding falls well short of the US$19.5 billion in incentives and tax credits embedded in the Inflation Reduction Act to support ag-tech, conservation and other measures. Even before Washington rolled out its signature climate program, U.S. climate funding as a percentage of total farmers’ revenues stood at 1.7%—more than three times the level in Canada. The proposed US$1.5 trillion Farm Bill could further extend America’s advantage.