Canadian Ag Could Unlock Billions with Renewed Productivity Growth, FCC Report Finds

Canadian farmers could see major income gains and a stronger national economy if agricultural productivity growth returns to its former pace, according to a new Farm Credit Canada (FCC) report.  

The report, Reigniting agricultural productivity in Canada, estimates that raising productivity growth to 2% annually — levels last seen in the 1990s and early 2000s — could unlock $30 billion in additional farm income, generate $31 billion in GDP, and create nearly 23,000 jobs nationwide, said an FCC release. 

For decades, Canada has stood out as a global agricultural leader, driven by improved farm management, better input efficiency, and technological innovation. But the report warns that productivity gains have slowed sharply in recent years. After averaging 2% in the 1990s and 2000s, growth declined to 1.3% in the 2010s and is projected to fall below 1%; levels comparable to the stagnant 1970s—if current trends persist. 

“Canada’s agricultural productivity growth has consistently outpaced other G7 countries for more than three decades,” said J.P. Gervais, FCC’s executive vice-president of strategy and impact. “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.” 

A major contributor to the slowdown, the report notes, is weak business investment in agricultural research and development, along with lagging venture capital funding for ag tech. While every dollar invested in agricultural innovation returns between $10 and $20 over the long term, Canada continues to fall behind global leaders. In 2024, US companies captured $6.5 billion in ag-tech venture funding, 45% of global deal values, while Canadian firms drew only $276 million, or roughly 2%. 

FCC President and CEO Justine Hendricks said the sector has the talent and ambition needed to regain its global edge.  

“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.”