Key Takeaways
- Farm Credit Canada (FCC) will invest $2 billion in agtech innovation by 2030 through its new investment arm, FCC Capital.
- The funding will support Canadian agriculture and food sector startups and scale-ups, from pre-seed to late-stage.
- In its first year, FCC Capital closed nine direct investments totaling $170 million and supported three new funds.
- This initiative aims to address Canada’s lagging venture capital presence in agtech, currently far behind global peers.
- FCC seeks to stimulate broader private investment and strengthen the country’s competitiveness in global agri-food markets.
FCC Capital Launches $2 Billion Commitment to Advance AgTech in Canada
Farm Credit Canada (FCC) has announced a long-term investment of $2 billion by 2030 to support innovation across Canada’s agriculture and food industry. The investment will be managed by FCC Capital, the organization’s newly launched investment arm, and aims to catalyze technology development that enhances efficiency, productivity, and sustainability throughout the sector.
This announcement, made during the Invest Canada 2025 Conference, signals a major strategic push to strengthen Canada’s position in global agtech innovation. The funds will be directed toward early-stage and growth-stage companies, along with agri-food investment funds and accelerators.
FCC Capital’s Role in Scaling Agri-Food Innovation
FCC Capital was established in 2024 to provide more flexible and expansive capital solutions for Canadian agri-food companies. In its inaugural year, the group executed nine direct equity investments totaling $170 million and invested in three new venture funds. It also added a business accelerator to its portfolio, signaling an intention to support innovation across all stages of company growth.
Darren Baccus, FCC’s Executive Vice-President for Agri-Food, Alliances, and FCC Capital, emphasized the importance of this investment during the formal announcement: “With this $2 billion allocation, FCC will continue its long history of supporting and partnering with the Canadian ag and food industry to offer greater security and sustainability in a highly competitive global market.”
Addressing Canada’s AgTech Investment Gap
Despite its strong agricultural foundation, Canada has lagged behind in venture capital investment in the agtech space. In 2023, agtech investments in Canada reached approximately $270 million—roughly ten times less than the United States when adjusted for population size. This funding gap, compared to regions like the EU and Japan, poses challenges for Canadian companies seeking to scale and compete globally.
Justine Hendricks, President and CEO of FCC, addressed this concern: “Canada’s economic future requires an agriculture and food industry leading the world in innovation and productivity. Until now, investment dollars have been scarce and have not scaled to meet the increasingly sophisticated needs of the sector.”
FCC’s new capital commitment is designed to “crowd in” additional investment by offering catalytic capital that draws interest from the broader investment community.
Strategic Outlook: Positioning Canada as a Global Leader
FCC’s initiative reflects a broader vision to elevate Canada’s agri-food ecosystem and close the strategic investment gap. Through FCC Capital, the organization is positioned to become a key enabler of innovation, with the goal of attracting additional private capital and ensuring long-term resilience for the sector.
