REGINA, SK, July 16, 2026 /CNW/ - Accelerated adoption of artificial intelligence (AI) could be the key to boosting the productivity, resilience and global competitiveness of the Canadian agriculture sector. That's according to Farm Credit Canada's (FCC) latest report, AI in Canadian Agriculture: Present Challenges and Future Prospects, which was developed with Deloitte Canada as part of a broader research collaboration on the topic.
The report highlights Canada's strong foundation for AI leadership in agriculture, including world-class research capacity, a globally trusted food system and a growing ag-tech ecosystem. Yet, AI use across farms and food businesses remains limited and uneven, lagging other industries and leading countries.
As of the second quarter of 2025, only 1.8 per cent of Canadian agricultural businesses were using AI, compared to 12.2 per cent across other industries; and only 61 per cent of agriculture, forestry, fishing and hunting enterprises have adopted advanced technologies, with the sector ranking 9th out of 12 industries. Globally, Canada ranks 25th when it comes to private investment in agricultural R&D and lags its G7 peers in AI adoption.
"Leading countries have advanced more rapidly through coordinated investment, strong public-private collaboration, and clear policy direction," said Darren Baccus, executive vice-president, Agri-Food, Alliances and FCC Capital. "Without action, adoption will remain fragmented and Canada risks falling further behind global competitors."
The report finds that AI adoption in Canadian agriculture and food is not constrained by technology availability, but more by systemic weaknesses. Fragmented digital infrastructure with limited rural connectivity, talent shortages, capital constraints, and historically unclear governance frameworks have been key barriers to AI adoption. Canada's new national "AI for All" strategy outlines a plan to address many of these constraints, making this an opportune moment for the sector to accelerate AI adoption.
The report identifies four opportunities to address the situation:
- Strengthen data governance and interoperability to improve trust and scalability;
- Increase investment in infrastructure, talent development, and commercialization;
- Align public and private stakeholders through partnerships and shared standards; and
- Establish clear, consistent regulatory frameworks to reduce uncertainty and risk.
"AI in agriculture is no longer experimental; it is delivering measurable value across the sector," said Tina Beaudry, partner, Technology and Transformation, Deloitte Canada. "From precision agriculture and animal health to genomics and robotics, organizations are already using AI to overcome longstanding operational challenges. As adoption accelerates, AI can help unlock new opportunities for innovation and productivity that were not previously possible – increasing Canada's global competitiveness in agriculture."
"AI has the potential to deliver significant value across the Canadian agriculture and food system," said Baccus. "At the farm level, it can improve decision-making, reduce input costs and enhance yields through more precise and predictive management. Across the value chain, AI can strengthen coordination, improve traceability, and enable a more responsive supply chain."
FCC has announced a $2 billion investment to advance ag-tech innovations and has also brought together an investment coalition of over 20 organizations pledging to deploy $5 billion into agricultural and food innovation by 2030. Through support for networks such as AIVA, FCC is helping scale innovation across the value chain by accelerating commercialization and connecting promising technologies with real sector needs. FCC's own Root AI and AgExpert show how trusted, accessible digital solutions can support better farm management and stronger decision-making.
About FCC
FCC is the leading lender in Canadian agriculture and food. FCC invests in industry success through innovation, productivity and sustainability. Customers rely on FCC for financing, capital, AgExpert management software, knowledge and industry connections. As a trusted partner and commercial Crown corporation that reinvests profits into ag and food, FCC is essential in building a stronger, more prosperous food industry for all Canadians. fcc.ca
SOURCE Farm Credit Canada
For more information, graphs, photos or interviews, contact: Serge Cloutier (bilingual), FCC media relations, 1-888-397-3217, [email protected]
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