Farm Credit Canada (FCC) has announced a major investment commitment that could reshape Canada’s agriculture technology sector. FCC will invest $2 billion in agricultural technology companies by 2030.
The announcement came at the Invest Canada 2025 conference in Calgary. FCC says the money will support new farming tools, research, and methods that make agriculture more efficient and sustainable.
Why This Investment Matters
Canada’s agriculture technology sector has been struggling to get funding. In 2023, Canadian agtech companies received only $270 million in venture capital investment. When you compare this to the United States by population size, Canada gets 10 times less funding.
“Investment dollars have been scarce and have not scaled to meet the increasingly sophisticated needs of the sector,” said Justine Hendricks, FCC’s president and CEO.
The global picture is also challenging. Worldwide investment in agriculture and food technology dropped to $16 billion in 2024, down from $31 billion in 2022. This represents a steep decline that has affected startups and innovation across the industry.
How the Money Will Be Used
The $2 billion will come through FCC Capital, a new investment arm launched in 2024. The money will support companies at different stages:
- Direct investments in growth-stage companies
- Fund investments covering early-stage startups
- Support for business accelerators
In its first year, FCC Capital already made nine direct investments worth $170 million. The company also invested in three new funds and added a business accelerator to its portfolio.
FCC’s first investment went to Catalera BioSolutions, a Vancouver company that makes biological pesticides for farmers.
What Companies Can Expect
Companies interested in FCC funding can approach the organization at any time. The investment focus will be on technologies that improve farming efficiency, productivity, and environmental sustainability.
“We’re uniquely positioned to provide catalytic capital and work with stakeholders to source compelling investment opportunities,” said Darren Baccus, FCC’s executive vice president.
The goal is to “crowd in” more private investment by showing confidence in Canadian agtech companies.
Industry Context
The timing of this announcement is significant. Canada has long struggled to turn agricultural research into successful businesses, despite having strong scientists and researchers.
Other countries are moving ahead with agtech investments. Japan and the European Union have both increased their agriculture technology funding in recent years.
Additional Government Support
FCC’s announcement comes alongside other government initiatives. Protein Industries Canada, another federally-backed organization, received an additional $15 million this week. This money will support genomics research and artificial intelligence projects in food production.
The new funding stream will invest $7 million in developing new crop varieties and $8 million in AI tools for farming.
Looking Forward
FCC is not receiving extra government funding for this commitment. The money will come from the organization’s existing resources.
The investment represents a significant step toward addressing Canada’s agtech funding gap. With global competition increasing and farming facing new challenges from climate change and population growth, this funding could help Canadian companies develop solutions that benefit farmers worldwide.
The success of this initiative will likely depend on how well FCC can identify promising companies and help them scale up their operations. For Canadian agtech entrepreneurs, the announcement provides hope for better access to the capital they need to grow their businesses.
