Canadian farmers could see significant income gains and new opportunities if agricultural productivity growth returns to historic highs. The Farm Credit Canada (FCC) report titled Reigniting agricultural productivity in Canada, estimates that boosting productivity growth to two per cent annually could unlock $30 billion in additional farm income, generate $31 billion in GDP, and create nearly 23,000 jobs across the country.
Canada has long been a standout among global food producers. Over the past half-century, the agriculture industry has achieved significant productivity growth through better farm management, improved input efficiency and technological innovation. The report warns, however, that productivity growth has slowed in recent years, threatening the industry's competitiveness and Canada's ability to meet growing national and global food demand.
"Canada's agricultural productivity growth has consistently outpaced other G7 countries for more than three decades, showing the strength and adaptability of our producers," says 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."
Low business investment in agricultural research and development and lagging venture capital investment in ag tech continue to slow productivity gains and limit the commercialization of new innovations. Closing Canada's investment gap is critical, as every dollar invested in agricultural innovation delivers long-term returns many times over.