$500 million ag VC fund a generational opportunity, say investors

‘The world needs what we grow and produce, and it’s time for us to build on our strength in commodities and into higher-value-added products,’ says Arlene Dickinson.

Farm Credit Canada (FCC) is investing $ 150 million in a new $ 500 million venture capital fund led by Canadian entrepreneur and investor Arlene Dickinson, as the federal government increases spending aimed at strengthening Canada’s food sector and diversifying agricultural exports.

“Canada’s agriculture and food industry has a generational opportunity to meet the growing demand at home and around the world for reliable, safe, and nutritious food. Agri-food Project Finance is a critical financing tool which will unlock the right projects to help Canada build the infrastructure and processing capacity we need for a stronger, more resilient, and more self-reliant food system,” FCC president and CEO Justine Hendricks said in a press release. “This launch rounds out FCC’s full complement of capital solutions, ensuring Canadian producers and agri-businesses have the financing and investment tools they need to seize this generational opportunity.”

The Velocity Agri-Capital Partners Fund will provide growth equity to Canadian agriculture and food companies, particularly middle-market and later-stage businesses seeking to expand into Southeast Asia. The fund could also invest in Southeast Asian companies interested in establishing operations in Canada.

Dickinson said the fund is intended to help Canada move beyond its traditional role as a commodity exporter and capture more value from its agricultural production.

“The world needs what we grow and produce, and it’s time for us to build on our strength in commodities and into higher-value-added products,” Dickinson said.

“We have focused on shipping grains and cereals and ingredients to other nations, who then take those ingredients and products, commoditize them, and ship them back to us,” she added.

FCC is the fund’s lead investor and said the investment is part of its commitment to provide $ 2 billion by 2030 to advance innovation in Canadian agriculture. Dickinson plans to raise the remaining $ 350 million from additional Canadian and international investors.

The investment comes shortly after the federal government announced $ 1 billion for an FCC-led Agri-food Project Finance Fund to support infrastructure and food-processing projects. The funding is part of the government’s $ 3.2-billion National Food Security Strategy.

Agriculture Minister Heath MacDonald has also promoted greater investment in food processing and international markets as Canada responds to U.S. tariffs and broader geopolitical uncertainty.

“That’s not a sign that we need to hold our heads low because of what’s going on geopolitically,” MacDonald said at Canada’s Outdoor Farm Show. “That’s a sign that we need to pick our chin up and say, ‘no way.’ I mean, we’re going to continue to farm. We’re going to continue to grow generation after generation.”

MacDonald said the U.S. market will remain important to Canadian agriculture, despite efforts to expand exports elsewhere.

“We just need to find a path forward, but I sincerely think we’ll be stronger and we’ll be better when we come out of this.”


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