Canadian farmers could see significant income gains and new opportunities if agricultural productivity growth returns to historic highs. The Farm Credit Canada (FCC) report titled Reigniting agricultural productivity in Canada, estimates that boosting productivity growth to two per cent annually could unlock $30 billion in additional farm income, generate $31 billion in GDP, and create nearly 23,000 jobs across the country.  

“Canada’s agricultural productivity growth has consistently outpaced other G7 countries for more than three decades, showing the strength and adaptability of our producers,” says J.P. Gervais, executive vice-president strategy and impact at FCC. “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.”\

The report identifies three key pathways for producers to boost productivity growth: 

• -  Improving efficiency by leveraging data and elevating management practices;
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• -  Scaling operations through strategic investment; and,
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• -  Accelerating innovation by adopting new technologies and approaches on the farm.

FCC has committed $2 billion by 2030 to advance ag and food innovation in Canada. Building on that commitment, FCC Capital is helping scale innovation across the entire value chain. The investment arm supports companies developing technologies and solutions that improve efficiency, productivity and sustainability, helping producers and processors adopt new tools, expand their operations and build a stronger, more competitive agriculture and food industry.

Other key report findings:

• -  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.
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• -  Boosting productivity growth to peak levels seen in past decades could increase returns to farmers by $30 billion – $18.5 billion for crop producers and $11.5 billion for animal producers –significantly improving profitability across the sector.
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• -  Every dollar invested in agricultural research and development yields an estimated long-term return of $10 to $20, highlighting the strong economic value of innovation.
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• -  Venture capital investment in ag tech businesses remains vital for driving innovation and supporting commercialization, yet it continues to lag in Canada. In 2024, U.S. firms captured $6.5 billion of these investments, representing 45 per cent of global deal values, while Canadian firms secured $276 million, or about 2 per cent, highlighting a major commercialization gap.

To read the entire report, link here: https://www.fcc-fac.ca/en/reports/agricultural-productivity-canada

Source: Farm Credit Corporation December 2, 2025 news release