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.
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