FCC report highlights productivity as key to Canada’s agricultural future
A new report by the Farm Credit Canada (FCC) states that for the past half-century, Canada’s agriculture industry has achieved “significant productivity growth” through improved farm management, input efficiency and technological innovations.
The report, titled Reigniting agricultural productivity in Canada, also states that productivity growth has slowed in recent years and could ultimately threaten the industry’s competitiveness.
Since peaking at 2% in the 1990s and 2000s, annual productivity growth has steadily declined, reaching 1.3% in the 2010s. It is projected to be under 1% annually if current trends continue.
“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.”
READ: Canada’s farmland values grew at a slower pace in 2024: FCC
The factors slowing productivity gains include low business investments in agricultural research and development and lagging venture capital investments in ag tech.
“Every dollar invested in agricultural research and development yields an estimated long-term return of $10 to $20, highlighting the strong economic value of innovation,” notes a press release.
The report identifies improving efficiency by leveraging data and elevating management practices, scaling operations through strategic investment and accelerating innovation by adopting new technologies and approaches on the farm as three pathways to boost productivity growth.
FCC has committed $2 billion by 2030 to advance ag and food innovation in Canada. FCC Capital is also helping to scale innovation across the entire value chain.
The investment arm supports companies developing technologies and solutions that improve efficiency, productivity and sustainability, helping producers and processors adopt new tools and expand their operations.
