Agriculture is a significant player in the economy, but it doesn’t get an equal share of large government or large pension or private growth fund investment.

Why it matters

The agriculture and food sectors can help Canada accomplish some of its goal of attracting $1 trillion in investment over five years, but the recent track record of growth funding has been poor.

Growth capital is needed by companies at the stage when they are operational and need to scale to be successful. That’s often when the most funding is needed and is beyond the ability of venture capital funds and smaller funders to provide.

“In the Canadian context, a lot of where that money is coming from would be in the early stage,” says Lisa Ashton, agriculture and nature policy lead with RBC Thought Leadership.

A growing number of incubators and accelerators, such as Emmertech in agriculture and District Ventures in food packaging, are now in place to help earlier in the agriculture technology business development process.

But once funding needs grow past $15 million, to help fund manufacturing or processing or global distribution, most of those groups are out.

Government growth funds don’t distribute money in the agriculture world in proportion to agriculture’s and food’s standing in the economy, and that’s limiting the sector’s potential as a strategic asset for the country.

Agriculture has received about two per cent of government-backed growth funding and four per cent of total growth funding in the past five years.

The RBC report says that for growth capital in agri-food to align with its contribution to GDP, funding needs to grow by 36 per cent to $13 billion from now to 2030, compared to the past five years.

“There is a mismatch between the framing of Canada’s agri-food sector as a superpower and its strategic advantages with the actual scale and focus of investments domestically,” the report says.

That growth needs ideas and people, but it also needs money, and the money isn’t flowing into agriculture right now.

Traditional funding won’t do it, the sector will need growth money from more generalist funds, says Ashton.

“Navigating that can be quite hard for generalists that don’t have a lot of exposure to agri-food,” she says. “It goes back to the talent challenge we see in agri-food and having more Canadians or people working in Canada who have an understanding of the sector.”

Funding in other countries

Other middle-power countries have better funding of agri-food from growth funds. Ashton says that once companies reach the need for $15 million in funding, the funder options drop off, and that’s a challenge in most countries. However, the drop off is much deeper in Canada than in Japan, the United Kingdom, the Netherlands and Germany.

“I wouldn’t say any country has a perfect example,” she says, but most of them outperform Canada in growth funding for agriculture and food.

What could be improved?

The RBC report listed five areas for improvement to help unlock more growth funding:

1. Improve intellectual property and academic incentives to increase commercialization of research, especially from universities.
2. Create an AI-driven concierge, housed within a national organization, that provides one-stop information to help manage the support drop-off that happens when a startup company outgrows incubators or accelerators.
3. Have agri-food experts translate industry knowledge for generalist investors.
4. Align government growth, investment and infrastructure funds to better fit with national strategic priorities, especially agri-food.
5. Help mitigate revenue uncertainty for companies creating value-added products in agriculture and food.

The goal is to grow global leaders in agriculture and food, to create ‘unicorn’ level companies with at least $1 billion in revenue. Ashton says these are rare in agriculture, but Canada has none, whereas most other major agriculture producing countries have produced some.

The post Growth capital hard to find for Canadian agri-food appeared first on Farmtario.

Agriculture is a significant player in the economy, but it doesn’t get an equal share of large government or large pension or private growth fund investment.

WHY IT MATTERS: The agriculture and food sectors can help Canada accomplish some of its goal of attracting $1 trillion in investment over five years, but the recent track record of growth funding has been poor.

Growth capital is needed by companies at the stage when they are operational and need to scale to be successful. That’s often when the most funding is needed and is beyond the ability of venture capital funds and smaller funders to provide.

“In the Canadian context, a lot of where that money is coming from would be in the early stage,” says Lisa Ashton, agriculture and nature policy lead with RBC Thought Leadership.

A growing number of incubators and accelerators, such as Emmertech in agriculture and District Ventures in food packaging, are now in place to help earlier in the agriculture technology business development process.

But once funding needs grow past $15 million, to help fund manufacturing or processing or global distribution, most of those groups are out.

Government growth funds don’t distribute money in the agriculture world in proportion to agriculture and food’s standing in the economy, and that’s limiting the sector’s potential as a strategic asset for the country.

Agriculture has received about two per cent of government-backed growth funding and four per cent of total growth funding in the past five years.

The RBC report says that for growth capital in agri-food to align with its contribution to GDP, funding needs to grow by 36 per cent to $13 billion from now to 2030, compared to the past five years.

“There is a mismatch between the framing of Canada’s agri-food sector as a superpower and its strategic advantages with the actual scale and focus of investments domestically,” the report says.

That growth needs ideas and people, but it also needs money, and the money isn’t flowing into agriculture right now.

Traditional funding won’t do it, the sector will need growth money from more generalist funds, says Ashton.

“Navigating that can be quite hard for generalists that don’t have a lot of exposure to agri-food,” she says. “It goes back to the talent challenge we see in agri-food and having more Canadians or people working in Canada who have an understanding of the sector.”

Funding in other countries

Other middle-power countries have better funding of agri-food from growth funds. Ashton says that once companies reach the need for $15 million in funding, the funder options drop off, and that’s a challenge in most countries. However, the drop off is much deeper in Canada than in Japan, the U.K., Netherlands and Germany.

“I wouldn’t say any country has a perfect example,” she says, but most of them outperform Canada in growth funding for agriculture and food.

What could be improved?

The RBC report listed five areas for improvement to help unlock more growth funding.

1. Improve intellectual property and academic incentives to increase commercialization of research, especially from universities.
2. Create an AI-driven concierge, housed within a national organization, that provides one-stop information to help manage the support drop off that happens when a startup company outgrows incubators or accelerators.
3. Have agri-food experts translate industry knowledge for generalist investors.
4. Align government growth, investment and infrastructure funds to better fit with national strategic priorities, especially agri-food.
5. Help mitigate revenue uncertainty for companies creating value-added products in agriculture and food.

The goal is to grow global leaders in agriculture and food, to create ‘unicorn’ level companies with at least $1 billion in revenue. Ashton says these are rare in agriculture, but Canada has none, whereas most other major agriculture producing countries have produced some.

The post Growth capital hard to find for Canadian agri-food appeared first on Farmtario.

“This year’s (Ontario Federation of Agriculture’s (OFA) Farm Business Confidence survey) results show Ontario farmers are resilient, but they need greater economic certainty,” said Drew Spoelstra, OFA president, in a media release.

WHY IT MATTERS: The survey reveals a widening confidence gap between individual farms and the sector, affecting spending.

Almost 79 per cent of participants cited rising input costs as a top concern, with volatile commodity prices, insurance costs, trade, tariff and access to export markets and tax burdens rounding out the top five issues.

“Farm families are managing risk and risking costs prudently,” stated Spoelstra. “But also need a supportive economic and policy environment for the sector to realize its full economic potential as a key driver of the province’s economic engine.”

These pressures delay major investments, as producers repair equipment rather than buy new, leading to a three-year low in machinery purchases.

The Ontario Chamber of Commerce’s 10th annual provincial economic report shows that only 23 per cent of firms have confidence in the province’s business outlook, mirroring the OFA’s results.

Producers identified farm taxes, fostering local food demand, and support for energy costs as top policy priorities, echoing two of last year’s top concerns.

The OFA’s full survey results will be released during a webinar on Feb. 25 from noon until 1 p.m., where Ben Lefort, OFA economist, will provide deeper analysis and context.

Registration is available here.

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And they’re willing to pay for it.

The breeding program aims to develop early-maturing, high-protein, high-yielding, non-GMO IP soybean varieties suitable for Canada’s northern climates, including Manitoba and northern Ontario, to enhance on-farm value and strengthen Canada’s soybean value chain competitiveness.

This also enables farmers to access higher-value crops that meet the growing national and global demand.

“We want to future-proof food exports here in Canada, so we’ve set out to develop new soybean genetic lines that can compete with GMO varieties on yield and disease resistance performance, with value-added protein characteristics,” says Masood Rizvi, general manager of NRGene Canada.

“This powerhouse project will boost Canada’s soybean industry and open new doors for farmers.”

Protein Industries Canada is contributing 45 per cent of the three-year program’s funding, with the remaining 55 per cent matched by four progressive industry partners: NRGene Canada, Pulse Genetics, Hensall Co-op, and Yumasoy Foods Ltd.

“Breeding programs take time, but we recognize the need for these new soybean varieties now,” says Rizvi, adding the new varieties will be bred to deliver higher yields, resist soybean cyst nematode (SCN), and perform across diverse growing conditions, helping farmers close the yield gap between GMO and non-GMO soybeans.

The breeding program, launched in June 2025, will conclude in March 2028 at which point the commercialization and scaling-up production phase of the new soybean lines begins.

Unlocking soy value

“Ontario’s soybean growers, together with farmers across Canada, have a long-standing reputation for producing high-quality, identity-preserved soybeans that meet the highest international food standards,” said Lisa Campbell, senior director of programs with Protein Industries Canada.

“This investment keeps our farmers competitive in the global market, while also driving new economic opportunities here at home for both farmers and food processors.”

Specialty soybean markets are growing, particularly in Japan, Korea, and Southeast Asia.

According to Rizvi, Canadian soybeans hold significant untapped potential and, with global demand for plant-based protein rising alongside population growth, there’s a need for continued investment in non-GMO soybean varieties.

That’s why initiatives, like the industry-wide soybean breeding program, will be key to helping farmers boost production efficiently and sustainably while expanding Canada’s reach in emerging global markets.

Improving the domestic production of high-value food-grade soybeans is also expected to open new opportunities in Canada.

“What if we can enhance our Canadian economy or even become an exporter of premium soy food products too?” asked Rizvi, highlighting additional project goals that would extend the soy breeding program throughout the value chain.

As a program partner, Yumasoy Foods Ltd., based in British Columbia, will test the new high-protein lines and explore opportunities to utilize soybeans for domestic food production, expanding the potential to enhance the nutritional value of Canadian food-grade soybeans, and potentially offer new soy food options and create additional jobs throughout the food chain.

Future of soy

“This investment marks a pivotal moment for Canada’s non-GMO soybean sector,” says Rizvi.

“Merging advanced genomics with farmer-focused breeding to develop food-grade varieties that meet global demand and open high-value market opportunities from southern Ontario to northern Manitoba, along with expanding and securing soy food production here at home and across the globe.”

While the program’s outcomes will have far-reaching impacts — from local soybean fields to tofu processors in Asia — the focus is on increasing the value Canadian farmers can gain. Rizvi says he looks forward to the day when soybean farmers are rewarded not just for yield, but also for protein content, and can take pride in producing premium soybeans that are in high demand worldwide.

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WHY IT MATTERS: With tariffs threatening farmers and the agri-food sector, improved global trade could signal the development of new markets governments have been encouraging throughout 2025.

The report, compiled by Dalhousie University’s Agri-Food Analytics Lab, ranks the performance of agri-food sectors across 19 G20 countries and the European Union. It found that Canada’s position has improved in many areas, despite a year marked by the threat of U.S. tariffs.

This release is the second edition of the report. Matt MacDonald, national leader of food and beverage processing at MNP, said this year’s iteration provides a more definitive way to measure Canada’s development.

“The first year, you’re kind of shooting in the dark. A little bit of, what does this mean? And you don’t have the benefit of indexing to yourself,” MacDonald said. “Going into the second year, we have the benefit of not only indexing to other countries, but we have the ability to look at how we did last year.”

The report said Canada ranks seventh overall in influence, second in trade and geopolitics, and remains in the top 10 in other categories, such as sectoral competitiveness and sustainability. However, the report also highlights issues such as increased retail consolidation, worsening food security, and missed opportunities in food processing.

“I think that Canada is progressing well,” said Sylvain Charlebois, head of the Dalhousie lab. “We are a second-tier country, but we’re at the top of the second tier.”

“There are challenges, of course; Scaling up businesses is not something that Canada does very well.”

One encouraging figure from the report was Canada’s geopolitical positioning. After a year in which Canadian agriculture had to pivot toward new markets, MacDonald said he was surprised to see Canada ranks second.

“I think that it does give hope that we’re moving the needle there for sure,” he said, adding that it can be difficult to capture the full scope of the situation as it continues to unfold.

“Part of that, I think, is on the backs of our strong agriculture sector,” MacDonald explained. “We have a lot to trade. We have a trade surplus of $60 billion, so when you’re that strong of a net exporter, I think you’re gonna have lots of friends.”

Charlebois said the numbers, while encouraging, may not tell the whole story.

“It may have actually been misleading,” he said, “especially for those who are looking for geopolitical force. Certainly, I wouldn’t rank it in the top or second tier on that, but when it comes to connections with the rest of the world, we are in a privileged position.”

He said Canada’s focus should now be on supporting businesses in their global interactions.

“We’re not necessarily taking advantage of some of these deals, so it means that companies aren’t willing to take the risk.”

Charlebois said the government should support processing to help the sector reach its full potential. MacDonald echoed the sentiment, saying Canada’s key problem is exporting primary agricultural products to other countries for value-added processing, resulting in GDP leakage.

MacDonald added this issue was highlighted in last year’s report, though Canada is steadily improving.

“We’re increasing our investment in the agri-food sector from a capital perspective,” MacDonald explained. “But we want to see more.”

Charlebois said one of the best ways to support farmers is through a strong processing sector. “There’s a bit of a deficit there, and that’s kind of the message that we were trying to send here, or at least that’s the outcome of our assessment.”

Retailer competition needed

MacDonald said the movement up four ranks, from 11th to seventh overall in a year, represents an improvement. However, the Canadian sector still lags in some areas, including increased retail consolidation, with the top four retailers going from 65 per cent to 72 per cent control this year over last.

“When you compare that to the United States, it’s significant,” he said. “Their top three retailers … It’s around 50 per cent.”

“If you really wanted to boil it down, 72 per cent of the dollar is going to four retailers. And last year it was 65 per cent. So, we want to see more retailers, less consolidation at the top.”

Canada ranked in the top eight in the report’s six main pillars of influence, except for Retail and Fiscal Regime, where it placed 16th.

This highlights another challenge Canada faces: the report states that one in five Canadians experiences food insecurity. MacDonald suggested that Canada can address this issue by spreading out retail distribution.

“In Canada … if you’re not in Loblaws and Walmart, it’s like you don’t exist, right? And the problem is that if you’re doing $10 million in sales, infrastructure-wise, I don’t think you can even ship to a player that big.”

The report emphasizes the momentum and opportunity to be seized in Canadian agriculture. Charlebois said that momentum is reflected in the sector as farms scale up.

“They’re embracing new technologies,” stated Charlebois. “Frankly, what’s holding the entire supply chain back is manufacturing, not necessarily farmers.”

He said one improvement still needed for Canada is to drop the humility and start sharing the story of its agriculture sector.

“We’re not good at bragging about what we’re doing. We just need to talk, tell our story a little bit better, and not be too Canadian about it.”

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The increase from the provincial and federal governments’ Sustainable Canadian Agricultural Partnership is part of a five-year investment strategy ending in 2028.

Why it matters: The investment provides farmers with financial support and tools to build long-term resiliency in the land and farm operations.

RALP’s Marginal Lands Initiative (MLI), delivered by Conservation Ontario, will receive an additional $9.6 million on top of the existing $12 million in funding over four years.

The second intake for MLI opens on Sept. 22, 2025, for projects that enhance natural features, such as wetlands or pollinator habitats, reduce Greenhouse Gas emissions, sequester carbon, and increase ecosystem goods and services.

Eligible projects could encompass:

Strip-planting perennial cover to create grassed waterways or manage in-field salinity.

Converting marginal or high-risk annual cropland to permanent grassland or perennial biomass crops, including establishing native or tame forages.

Wetland restoration, construction of new wetlands, or creating/widening buffers in agricultural fields adjacent to surface water sources, to protect existing riparian areas

Establishing shelterbelts for farmyards, livestock facilities, fields or intercropping with trees, including planting trees or shrubs on marginal or high-risk cropland.

“Together, we’re helping farmers across the province take on environmental projects that support their farms and protect their land – both important for Ontario’s future and economy,” said Dave Barton, Conservation Ontario chair and Uxbridge mayor, in a statement.

Angela Copeland, Conservation Ontario’s general manager, stated in an email that the funding increase will be allocated based on the program’s requests and the merits of each intake submission until the program concludes in 2028.

The Ontario Agricultural Sustainability Initiative, delivered by the Ontario Soil and Crop Improvement Association, was recently granted an additional $5 million in funding to help producers with costs for planting grasslands and trees, reducing tillage, and constructing water retention features until 2028. The Initiative’s RALP intake remains open.

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“These upgrades reflect our ongoing commitment to innovation and customer satisfaction,” said Troy Tate, Brantford location manager. “We want our growers to be in, out and back in their combines as seamlessly as possible.”

Why it matters: As a family-owned independent company, Snobelen specializes in the production, processing and sales of food-grade soybeans, commercial grains, and pedigreed seeds for national and international markets.

The facility’s new commercial receiving pit, drag and elevator system has a 16,000-bushel takeaway capacity, two-and-a-half times faster than the old system.

The new downspouts allow all wet grain storage tanks to fill at total capacity. The new grain handling equipment is tied into the existing automated system to ensure a smooth grain flow throughout the facility.

The second commercial receiving pit and elevator underwent a complete overhaul, incorporating a fully automated turn head and new downspouts to enhance takeaway speed and efficiency.

Tate said the new equipment and increased capacity will reduce wait times and allow growers to customize delivery scheduling to fit their specific needs.

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The financial boost from the Sustainable Canadian Agricultural Partnership will enhance the SPUD Unit’s ability to provide farmers and the agriculture and food industry with increased plant disease testing and healthy plant stock for Ontario’s commercial growers.

Why it matters: The investment will enable growers to access top-quality crops and crop research, allowing them to supply current markets and create new opportunities.

The funds are earmarked for capital and equipment upgrades within the facility, including irrigation, air filtration, heating and control system improvements, increased sterilization capacity and improved greenhouse coverings.

“The SPUD Unit is a critical piece of infrastructure, supporting the clean seed and propagation needs of several significant edible horticulture crops in Ontario,” said Shawn Brenn, Ontario Fruit and Vegetable Growers’ Association chair, in the press release.

The SPUD unit improvements will increase the ability to anticipate, detect, mitigate and reduce plant diseases and pests along the supply chain, which will benefit the province’s potato, berry, garlic, sweet potato and hazelnut growers.

Ontario Minister of Agriculture, Food and Agribusiness Rob Flack said the funds align with the Grow Ontario Strategy to increase research, innovation and adoption of new protocols and technology.  Flack said these upgrades will improve the province’s farming and food production sector resiliency and competitiveness and strengthen the industry against future disruptions.

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Canada also has stable governments, reliable laws and a favourable climate for growing crops and raising livestock.

But Canada isn’t a destination of choice for global money managers who want to invest in agricultural land, says a representative of a farmland investment firm in Toronto.

Why it matters: Investors are interested in Canadian farmland, but other countries make investments easier to obtain.

“Is there interest in investing in Canadian farmland from non-Canadians? I’d say the answer is yes,” said Andrea Gruza, managing partner with Bonnefield, a farmland investment firm that describes itself as Canada’s foremost provider of land-lease financing for farmers.

Groups that want to invest in Canadian farmland could be pension funds, insurance companies or possibly a “large, wealthy family office,” Gruza explained. They don’t want to own and operate a farm but they do want to invest in agriculture.

“They like the macro-economic dynamics of agriculture …. They have capital available and they’re looking to get a return on their capital.”

Canadian farmland may look enticing to those investors, but most choose to park their money elsewhere; likely America, Australia or maybe Europe, said Gruza.

“When groups look across the globe and see that a region like Australia is open for investment, that’s an easier landscape to navigate (than) Manitoba, Saskatchewan and Alberta and Quebec, (that) will have very specific ownership restrictions …. They’d like to be exposed to Canada. It’s just harder to do.”

Saskatchewan in particular is a difficult place for foreign investors to buy farmland. Provincial regulations restrict ownership to Canadian citizens or permanent residents. Even pension funds and publicly traded entities cannot own farmland in Saskatchewan.

In contrast, foreigners can and do own a sizable share of Australian farmland.

Data from foreigninvestment.gov.au, a government website, says that foreigners owned or partly owned 14.1 percent of Aussie farmland in 2021.

Restrictions and regulations in certain Canadian provinces are a major issue, but other factors also come into play.

The United States has more farmland and more options for potential investors.

“It’s a bigger market … it’s a more mature market. There are a lot of farmland managers who you can put money with …. There’s a lot of different growing regions,” said Joelle Faulkner, chief executive and co-founder of Area One Farms, an Ontario company that partners with farmers on land ownership.

“If you come to North America, you’re going to invest in the U.S (farmland)… first.”

In many parts of the globe, hotter and drier weather is making it difficult to grow crops and produce grass for livestock. The extreme weather is expected to get worse, so Canada’s climate looks attractive to global investors, Gruza said.

Historically, it’s been difficult to grow crops like corn in Western Canada and northern Ontario. If temperatures continue to rise, Canadian farmers could have more options.

“Now having increasing heat units, having slightly longer growing seasons, that’s allowing Canadian farmers … to plant higher value crops,” Gruza said. “That is an attractive opportunity. That is making Canada as a differentiator to other parts of the world.”

Looking ahead, the average age of Canadian farmers (around 58) represents a major opportunity for farmland investors. Over the next 10 to15 years, thousands will retire and may choose to rent their land to a younger producer.

Eventually, the family that owns the land will want to cash out, which means the young producer will need financial help to buy the land.

In such cases, there is an opportunity for a farmland investor to buy the property and lease it back to the young producer, Gruza said.

“We’re going to see increasing situations like that. (Global) investors see that Canada is facing those dynamics.”

– Robert Arnason is a reporter with the Western Producer.

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The Kimberly Cattle Portfolio “is an established and well-managed asset that provides important diversification in our client portfolios,” said Ben Hawkins, executive managing director at the Alberta Investment Management Corporation (AIMCo), in a Nov. 28 news release.

AIMCo invests globally on behalf of pension, endowment, insurance, and government funds in Alberta.

AIMCo partnered with Australian agriculture investment management firm New Agriculture on the deal. It followed a public tender process and is subject to regulatory approvals, the release said.

The portfolio consists of Yougawalla Pastoral Co and Argyle Cattle Co. It’s a large-scale cattle breeding business spanning nearly 3 million hectares (7.4 million acres) or largely leased land in the Kimberly region of Western Australia, AIMCo said in the news release.

AIMCo previously acquired Australian mixed farming business Lawson Grains in January of 2022. The corporate grain operation farms over 90,000 hectares (a bit more than 222,000 acres), according to the company’s website.

Haydn and Jane Sale are staying on as managers of the portfolio, the release said.

Haydn Sale told Australian media that AIMCo is planning to expand on natural assets, like approval for nearly 500 hectares (1236 acres) of irrigation, and frontage on a few major water sources.

“Ensuring we can grow fodder to further value-add cattle has been a big key focus for us and the new buyers coming in really saw that as a big upside for the business,” he told the Australian Broadcasting Corporation (ABC).

“They’re very much behind getting that development done,” Sale added.

AIMCo bought the portfolio from Hong Kong property developer Hui Wing Mau, according to the Nov. 29 ABC report.

—Geralyn Wichers is associate digital editor of AGCanada.com. She writes from southeastern Manitoba.

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