By #1 Story – d2127

Productivity the key to Canada’s agricultural future

Dec 3, 2025 | 2:48 PM

Canadian farmers could see significant increases in income and new opportunities if agricultural productivity growth returns to historic highs. This is according to a Farm Credit Canada (FCC) report.

The report titled Reigniting Agricultural Productivity in Canada, estimated boosting productivity growth to two per cent each year could unlock $30 billion in additional farm income, generate $31 billion in GDP, and create nearly 23,000 jobs across the country.

The FCC executive vice-president strategy J.P. Gervais said over the past half-century, the agriculture industry has achieved significant productivity growth through better farm management, improved input efficiency and technological innovation.

However, the report warns productivity growth has slowed in recent years, threatening the industry’s competitiveness and Canada’s ability to meet growing national and global food demand.

“Canada’s agricultural productivity growth has consistently outpaced other G7 countries for more than three decades, showing the strength and adaptability of our producers,” Gervais said. “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.”

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Since peaking at two per cent in the 1990s and 2000s, annual productivity growth has steadily declined, reaching 1.3 per cent in the 2010s. It is projected to be under one per cent annually, a level reminiscent of the 1970s if current trends continue.

Low business investment in agricultural research and development and lagging venture capital investment in ag tech continue to slow productivity gains and limit the commercialization of new innovations.

FCC president and CEO Justine Hendricks said Canada’s investment gap is critical, as every dollar invested in agricultural innovation delivers long-term returns many times over.

“Canadian agriculture has the talent, ingenuity and drive to lead the world in sustainable food production,” Hendricks said. “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.”

The report identifies three key areas for producers to boost productivity growth. This includes improving efficiency by leveraging data and elevating management practices, scaling operations through strategic investment, and accelerating innovation by adopting new technologies and approaches on the farm.

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alice.mcfarlane@pattisonmedia.com