The federal government unveiled a significant investment package aimed at bolstering Canada’s food security and economy on Monday, announcing a $1 billion Agri-food Project Finance Fund and a $150 million allocation to Velocity Agri-Capital Partners. Launched at the historic Arva Flour Mill, the initiative seeks to build resilience against global economic headwinds, including trade shifts and competition, while fostering domestic value-added processing. The cornerstone of the announcement is the $1 billion Agri-food Project Finance Fund, which will be administered by Farm Credit Canada (FCC). This fund is a critical component of the government’s National Food Security Strategy (NFSS) and is designed to support mid-market agri-food infrastructure projects across the nation. Agriculture and Agri-Food Minister Heath MacDonald highlighted the pressing need for strategic investments in the face of global volatility. “There are many disruptions happening globally that are putting pressure on our food system and driving up costs at the checkout,” MacDonald stated. “Complex challenges require solutions that deliver real results.” The fund aims to bridge financing gaps for projects that are often too large or intricate for conventional lending, thereby boosting domestic processing capacity and enhancing the value derived from Canadian farm products. Justine Hendricks, President and Chief Executive Officer of Farm Credit Canada, detailed the fund’s specific target market. “It’s intended for mid-market projects, typically between 25 million and 500 million in total capital costs,” Hendricks explained. “These are projects that are often too large or too complex for conventional lending, but to specialize for traditional investor in infrastructure.” FCC is committed to deploying $2 billion by 2030 to drive innovation and capital-intensive projects within the agriculture and food industry. The Arva Flour Mill served as a practical illustration of the initiative’s goals, showcasing its development of new bread mix products to add value. Minister MacDonald emphasized the broader economic impact of such ventures. “Produce more product, hire more people, drive the economy in these small rural towns, that’s what we’re trying to do,” he said. In parallel, the government announced $150 million directed to Velocity Agri-Capital Partners, a growth equity fund with operational teams in Canada and Singapore. This capital will focus on identifying and scaling agri-food and agri-tech opportunities positioned for international export. Arlene Dickinson, General Partner at Velocity Agri-Capital Partners, underscored the fund’s strategic role in trade diversification. “This fund is also deliberately about trade diversification,” Dickinson commented. “We built it with a Singapore office, giving our companies a direct bridge into a region of roughly 1.5 billion people who know exactly what Canada produces.” She added that the fund is instrumental in “de-risking the economy” and supports broader efforts to attract international investment into Canada. These investments are a direct response to a rapidly evolving global landscape, marked by trade shifts, conflict, and climate change, all of which are intensifying pressure on food security systems. The National Food Security Strategy, backed by more than $3 billion in investments over 10 years, aims to enhance food affordability, foster productivity and innovation, support Canadian businesses, and build a more resilient food system. FCC has also convened a coalition of over 20 investment organizations prepared to deploy up to $5 billion into Canadian agriculture and food innovation by 2030, further demonstrating industry mobilization. Local Members of Parliament, including Peter Fragiskatos and Arielle Kayabaga, also highlighted the significance of this funding for the London region, noting its potential to create jobs and strengthen the local agri-food sector.
