Borrowing billions: getting bigger or getting better?

Thanks to the adoption of new technology, Canada’s 262,000 farmers are producing more than ever before. The Bank of Montreal (BMO) reports that since the late 1990s, total labour productivity in Canada has increased by 31 per cent, while agriculture has surged 190 per cent over the same period. Aaron Goertzen, senior economist for BMO writes: “Few sectors of the economy can hold a candle to that performance.”

Here's a sample of what growers are investing to produce more per acre. Building a state-of-the art vegetable greenhouse runs $1.2 to $2 million per acre. Planting high-density apples in an orchard comes in at more than $50,000 an acre. And that new potato sprayer with a 120-foot boom: $600,000. For about the same price you can get a new potato harvester. But it’s tempting to add a $30,000 subscription package to optimize your data collection.

All of that new technology –AI, optimized LED lighting, robotics -- is priced at a premium, given that most purchases are in U.S. dollars.