By Gerelyn Terzo, Global AgInvesting Media
Farm Credit Canada (FCC) has earmarked C$2 billion (US$1.5 billion) to invest in agtech innovation across the Great White North through 2030. Through its investment arm FCC Capital, the organization will target food and ag investment opportunities specializing in areas like innovative devices, instrumentation, research, and methodologies designed to improve efficiency, productivity and sustainability.
While FCC has been around for decades, FCC Capital is a newer venture, having been launched in 2024. FCC Capital deploys both direct equity and investment fund capital, pursuing businesses ranging from the pre-seed stage to growth-driven late-stage companies.
In its first year, FCC Capital built a strong initial portfolio through nearly a dozen deals worth a combined C$170 million (US$124 million) while also committing capital to a trio of new funds and bringing a new business accelerator under its wing. Among its investments, FCC backed Catalera BioSolutions, which specializes in biological pest control solutions, in a round that included S2G Ventures.
Canada’s agtech industry has been facing an uphill battle for in annual venture capital. For example, in 2023, venture capital allocations within the Canadian agtech space were estimated at around C$270 million (US$196.7 million), one- tenth of the U.S. investment when adjusted for population nuances. Canada has clearly been at a strategic disadvantage for inflows while both Japan and the European Union have demonstrated an accelerating commitment of capital to agtech innovations. FCC is looking to reverse that trend by channeling crucial capital into Canada’s burgeoning agtech sector.
Of the latest capital commitment, FCC President and CEO Justine Hendricks stated, “Canada’s economic future requires an agriculture and food industry leading the world in innovation and productivity. However, until now, investment dollars have been scarce and have not scaled to meet the increasingly sophisticated needs of the sector. Through this investment, FCC is delivering on its commitment to be a catalyst and support innovation and productivity in one of Canada’s most important and investable sectors.”
FCC Capital Executive Vice President Darren Baccus said, “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. At FCC, we’re uniquely positioned to provide catalytic capital and work with stakeholders to source compelling investment opportunities. We are confident that our investment commitment to the industry will ‘crowd in’ capital to amplify the economic impact.”
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