Farm Credit Canada has rolled out a new $1-billion financing fund designed to help agriculture and food-processing projects move from the planning stage into actual construction. The launch was announced on Sept. 14 by Agriculture and Agri-Food Minister Heath MacDonald, who also confirmed a separate $150-million investment in Velocity Agri-Capital Partners through FCC Capital. Both investments are being positioned as part of the federal government’s National Food Security Strategy.
Fund Targets Processing and Infrastructure Projects
The new Agri-food Project Finance Fund will focus on capital-intensive, mid-market agriculture and agri-food infrastructure projects across the country. According to Agriculture and Agri-Food Canada, the financing is meant to close funding gaps that complex projects often face, including those involving food processing, infrastructure builds and new technology.
The federal government said one goal of the program is to expand domestic processing capacity, allowing more agricultural products to be turned into higher-value goods within Canada rather than being processed elsewhere. The first phase for expressions of interest in the fund opened alongside the announcement.
FCC president and CEO Justine Hendricks said the financing tool is meant to help build out processing and infrastructure capacity across Canada’s agriculture and food sector, describing it as a critical tool that will help unlock the right projects.
$150 Million Directed Toward Agri-Tech Investment
Separately, FCC Capital is providing $150 million to Velocity Agri-Capital Partners, a growth-equity fund led by Arlene Dickinson with teams operating in Canada and Singapore. That funding will target agriculture, food and agricultural technology businesses across the supply chain, including companies working to commercialize new technology, expand processing capacity or develop export markets.
Dickinson said the fund is also in discussions with Canadian and international investors about additional commitments of up to $350 million, with part of that effort focused on helping Canadian companies access markets in Southeast Asia.
Part of a Larger Federal Investment Push
The latest announcements build on a commitment FCC made in 2025 to invest $2 billion by 2030 in agriculture and food innovation, processing and other capital-intensive projects. In February, FCC also announced a coalition of more than 20 investment organizations that said they were prepared to deploy as much as $5 billion into Canadian agriculture and food innovation by 2030.
The broader National Food Security Strategy, unveiled earlier this year, includes more than $3 billion in planned investments over 10 years spanning food production, processing, infrastructure and innovation initiatives. MacDonald said the government expects the new financing programs to help producers and processors expand domestic capacity and bring larger projects forward. The $1-billion FCC fund is open to eligible projects across Canada.
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