Farm Credit Canada (FCC) has committed to invest $2 billion by 2030 to advance agtech innovation in Canada’s agriculture and food industry. This will direct more investment into innovative devices, instrumentation, research, and methodologies designed to improve efficiency, productivity, and sustainability.
The funds will come from the organization’s new investment arm, FCC Capital, a group offering capital solutions that catalyze the broader investing ecosystem and bolster growth. Launched in 2024, FCC Capital delivers an expanded offering of capital solutions to companies across the entire ag and food value chain, including investment funds and direct equity capital dispersed from pre-seed stage to growth-driven late-stage companies. In its inaugural year, it built a foundation by closing nine direct investment deals totaling $170 million, investing in three new funds, and adding a new business accelerator to its portfolio.
“Canada’s economic future requires an agriculture and food industry leading the world in innovation and productivity. However, until now, investment dollars have been scarce and have not scaled to meet the increasingly sophisticated needs of the sector. Through this investment, FCC is delivering on its commitment to be a catalyst and support innovation and productivity in one of Canada’s most important and investable sectors,” says Justine Hendricks, FCC president and CEO.
This announcement comes at a time when various sources are showing that annual venture capital investment into Canada’s agtech sector is lagging. In 2023, Canada’s venture capital investments in the sector were cited at approximately $270 million, 10 times below the United States when adjusted for population. This low level of investment puts Canada at a strategic disadvantage. At the same time, Japan and the European Union have been demonstrating increased investments in agtech.
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