REGINA, SK, Dec. 2, 2025 /CNW/ - 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.
"Canadian agriculture has the talent, ingenuity and drive to lead the world in sustainable food production," says Justine Hendricks, president and CEO at FCC. "By putting productivity and innovation at the centre of how we grow, we can strengthen our food system, support the people behind it and build a more resilient industry for today and future generations."
Productivity is about helping farmers make the most of their resources. It means using land, livestock, labour and equipment efficiently, reducing waste, improving quality, and using technology to find new ways to grow.
The report identifies three key pathways for producers to boost productivity growth:
- 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.
Turning those goals into action takes practical tools and real-world testing. With a single growth season each year, farmers face substantial risk in testing new production technologies or methods, and returns on these investments take a long time to be fully realized. Through Innovation Farms powered by AgExpert, FCC supports on-farm innovation by helping producers test and refine new practices.
FCC has committed $2 billion by 2030 to advance ag and food innovation in Canada. Building on that commitment, FCC Capital is helping 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, expand their operations and build a stronger, more competitive agriculture and food industry.
Other key report findings:
- Since peaking at two per cent in the 1990s and 2000s, annual productivity growth has steadily declined, reaching 1.3 per cent in the 2010s. It is projected to be under one per cent annually, a level reminiscent of the 1970s if current trends continue.
- Boosting productivity growth to peak levels seen in past decades could increase returns to farmers by $30 billion – $18.5 billion for crop producers and $11.5 billion for animal producers –significantly improving profitability across the sector.
- 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.
- Venture capital investment in ag tech businesses remains vital for driving innovation and supporting commercialization, yet it continues to lag in Canada. In 2024, U.S. firms captured $6.5 billion of these investments, representing 45 per cent of global deal values, while Canadian firms secured $276 million, or about 2 per cent, highlighting a major commercialization gap.
About FCC
FCC is proud to be 100 per cent invested in Canadian agriculture and food. The organization's employees are committed to the long-standing success of those who produce and process Canadian food. FCC provides flexible financing and capital solutions, while creating value through data, knowledge, relationships and expertise. FCC offers a complement of financial and non-financial products and services designed to support the complex and evolving needs of the industry. As a commercial Crown corporation, FCC is a stable partner that reinvests profits back into the industry and communities it serves. For more information, visit fcc.ca.
SOURCE Farm Credit Canada
For more information, graphs, photos or interviews, contact: Éva Larouche (bilingual), FCC Media Relations, 1-888-780-6647, [email protected]
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