Canada is way behind on capital investment in ag. Where does it fall apart?

"What we're finding is that there's huge valleys in capital that restrict companies from going from that early seed stage all the way to maturity. While early-stage funding has improved in recent years, scaling companies-particularly those that are asset-heavy, such as equipment manufacturing or food processing-often struggle to secure patient growth capital."

"Globally, Canada attracts roughly three per cent of agri-food growth capital. Domestically, agri-food receives about two per cent of federal venture, growth, and infrastructure funding, despite contributing closer to seven to 10 per cent of GDP. That mismatch points to what Ashton describes as an undercapitalized sector."

"Companies cite slow and sometimes unpredictable approval processes, which can push innovators to file patents or scale in other jurisdictions. Potential solutions include carving out dedicated agri-food allocations within broader federal funds and improving regulatory transparency."

Canada's agri-food sector is a global trade leader but faces a critical growth capital shortage. The sector receives approximately 2% of federal venture, growth, and infrastructure funding despite contributing 7-10% of GDP. Globally, Canada attracts only 3% of agri-food growth capital. While early-stage funding has improved, scaling companies—particularly asset-heavy operations like equipment manufacturing and food processing—struggle to secure patient growth capital. Beyond capital constraints, regulatory and commercialization challenges hinder growth, with slow approval processes pushing innovators to file patents or expand in other jurisdictions. Solutions include dedicated agri-food allocations within federal funding programs and improved regulatory transparency. Export-ready strategies from inception can leverage Canada's position as a launchpad for global expansion.

Read at Realagriculture