Farm Credit Canada says the funding commitment will allow it to invest directly into promising agriculture technology companies.
It’s an old story in Canada.
The country has great agricultural and agri-food scientists, but turning their research and innovations into profitable businesses has historically been a struggle.
Farm Credit Canada is hoping to re-write that story.
FCC said last week it will invest $2 billion to support innovation within Canada’s agriculture and agri-food industries between now and 2030.
“At FCC, we’re uniquely positioned to provide catalytic capital and work with stakeholders to source compelling investment opportunities,” FCC executive vice-president Darren Baccus said in a news release.
“We are confident that our investment commitment to the industry will ‘crowd in’ capital to amplify the economic impact.”
The $2 billion will come from FCC Capital, which the federal crown corporation created last year.
Graeme Millen was hired in 2024 to help lead FCC Capital. Last September, he said FCC has been investing in funds dedicated to agriculture and agri-food for a number of years. FCC Capital will continue to do that, but it also will invest directly into promising ag tech companies.
“(This is) the natural evolution from where we went to third parties (to invest)…. What FCC Capital is doing is crystallizing on our strategy of driving innovation and impact in Canadian agriculture and food by leaning into different risk,” said Millen, vice-president of business development and ecosystem support at FCC Capital
For instance, last year FCC Capital put money into Catalera BioSolutions, a Vancouver firm that produces bio-pesticides and other biologicals for agriculture.
In its first year, FCC Capital made “nine direct investment deals totaling $170 million, investing in three new funds, and adding a new business accelerator to its portfolio,” FCC said.
The funding is needed because the amount of venture capital flowing into agriculture and food technology has dried up.
Globally, investment in agri-food tech was US$16 billion in 2024, a drop of four per cent from 2023, said agfunder.com.
That’s about half of 2022, when global investment in ag tech and food technology firms was $31 billion, using data from AgFunder.
In Canada, venture capital investment in ag tech was $270 million in 2023, FCC said. That’s “10 times below the United States when adjusted for population,” FCC said.
Canada is lagging behind other regions, such as the European Union and Japan, on venture capital for agriculture and agri-food. The $2 billion commitment will help Canada compete, said Justine Hendricks, FCC president and chief executive officer.
“Canada’s economic future requires an agriculture and food industry leading the world in innovation and productivity,” she said.
“Until now, investment dollars have been scarce and have not … (met) the increasingly sophisticated needs of the sector. 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.”
Source - https://www.producer.com
