Canada’s agriculture and agri-food sector is not expected to be a headline focus at the federal government’s upcoming investment summit, but industry voices say the sector could still benefit from the broader push for capital spending.
The summit, scheduled for September 14 and 15 in Toronto, is part of a federal effort to mobilize $1 trillion in investments over the next five years. According to Tyler McCann, managing director of the Canadian Agri-Food Policy Institute, agriculture does not appear to be on the formal agenda, though related discussions are expected to take place at events on the sidelines of the main summit.
A report from RBC issued ahead of the summit identified five key sectors the government could prioritize for investment, and agriculture was not among them, receiving little mention overall. Reporting from the Globe and Mail similarly indicates there are no direct agricultural investments currently planned for the summit, although some proposed projects — such as an expansion of the Port of Churchill — could have downstream benefits for the sector.
Despite the apparent lack of direct attention, Serge Buy, head of the Agri-Food Innovation Council, said he remains confident agriculture will draw investment interest. He pointed to recent comments from government officials, including Dominic Barton, chair of Invest in Canada, as a sign of growing recognition of the sector’s importance. Buy said his outlook has improved compared to a few months ago, citing what he described as more openness from the government toward agriculture and food.
Buy also argued that Canada’s ambitions to diversify into new export markets will depend on infrastructure investment, suggesting that stronger infrastructure now could support future trade diversification. He said he would not be surprised if some summit-related announcements ultimately touch on agriculture and food, potentially including infrastructure projects or investments tied to large-scale greenhouse development.
J.P. Gervais, executive vice-president of ag production at Farm Credit Canada, said investment in other sectors can also benefit agriculture indirectly. He pointed to past investment in defence-related technology, such as data imagery, as an example of innovation that can carry over into agricultural applications. Gervais said a first step is ensuring agriculture and food are included in the broader pool of sectors considered attractive for investment.
McCann said one obstacle for agriculture in attracting major investment is a structural mismatch between the sector’s preference for smaller projects and the scale of funding needed for larger initiatives, such as food processing facilities that can cost hundreds of millions or billions of dollars. He said the sector has struggled to help smaller companies grow into larger, globally competitive ones.
The sheer number of businesses operating across Canadian agriculture — from farms to food processors — was also raised as a potential challenge. Buy noted that there isn’t a single, unified path representing the sector’s interests, though he said that may not matter much in practice, since investment decisions will ultimately be made on financial merit. McCann said he does not see this fragmentation as a major barrier, noting that a relatively small number of large farms and processors account for the bulk of revenue and investment capacity in the sector. He said about 7.5 per cent of farms generate roughly 75 per cent of farm revenues, and that only around 50 of Canada’s thousands of food processing companies are large enough to make significant investments.
McCann added that the sector currently lacks a coordinated, standardized list of investment priorities, saying he was surprised that Canada’s agriculture ministers have not developed a joint strategy to identify shared infrastructure goals. He said establishing such priorities could help align the sector’s needs with broader government investment plans.
This article is for informational purposes only and does not constitute financial, investment, or legal advice. Consult a licensed financial advisor before making investment decisions.
This article references reporting from:
