Farm Credit Canada’s (FCC) economics team says rekindling productivity growth in Canadian agriculture is a $30 billion opportunity over 10 years according to a new report.
“If the agriculture industry can return productivity growth to where it was two decades ago, FCC estimates it would add as much as $30 billion in net cash income over 10 years,” says J.P. Gervais, FCC’s chief economist. “Developing innovative solutions, adopting new technology and leveraging data and insights can boost productivity growth and pay off in a big way for Canadian farms.”
Canada’s agricultural productivity growth has slowed since 2011 which is consistent with global agricultural productivity trends.
Agricultural productivity evaluates how inputs such as labour, capital, land, fertilizer and feed are efficiently transformed into outputs such as crops, livestock and aquaculture products. Productivity growth happens when producers increase their output using the same or smaller quantities of inputs.