A new FCC report finds artificial intelligence can help Canadian farmers reduce costs, improve yields and build a more competitive agri-food sector.
Accelerating the adoption of artificial intelligence (AI) could play a major role in improving productivity, strengthening resilience and enhancing the global competitiveness of Canada’s agriculture sector, according to Farm Credit Canada’s (FCC) latest report, AI in Canadian Agriculture: Present Challenges and Future Prospects. The report was developed in partnership with Deloitte Canada as part of a broader research initiative.
The report notes that Canada has a strong foundation for AI leadership, supported by world-class research, a trusted food system and an expanding ag-tech sector. However, AI adoption across farms and agri-food businesses remains limited compared with other industries and leading countries.
Data from the second quarter of 2025 shows that only 1.8 per cent of Canadian agricultural businesses were using AI, compared with 12.2 per cent across all industries. In addition, only 61 per cent of agriculture, forestry, fishing and hunting enterprises have adopted advanced technologies, placing the sector ninth among 12 industries.
“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 attributes slower adoption to challenges such as limited rural connectivity, fragmented digital infrastructure, talent shortages, capital constraints and previously unclear governance frameworks.
It outlines four priorities: strengthening data governance, increasing investment in infrastructure and talent, expanding public-private collaboration, and establishing consistent regulatory frameworks.
“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 is supporting the sector through a $2 billion investment in ag-tech innovation and a coalition of more than 20 organizations committed to investing $5 billion in agricultural and food innovation by 2030.