Canadian Funding for Agriculture Sectors Outpaced By Global Average
Canadian farmers are worried, and for good reason. The community is becoming overwhelmed with challenges, such as increasing production, reducing emissions, and changing climate conditions. Meanwhile, the government has steadily declined funding and support for the sector. A report by RBC emphasizes the lack of support for Canada’s agriculture community compared to other leading food-producing countries. The US, EU, Australia, and China all outpace Canada’s climate funding for their agriculture sectors. At first glance, the 2023 federal budget in Canada seems helpful, with $ 333 million allocated over the next decade to research, product development, and processing capacity within the sector. However, the country’s spending on agricultural research & development (R&D) pales compared to other countries.
Last year, the US announced an Inflation Reduction Act, committing $ 19.5 billion in incentives and tax credits for supporting ag-tech, conservation, and similar measures. China is revitalizing the country’s farmland with an annual $7-billion investment promoting climate-smart agriculture. The EU's Common Agricultural Policy (CAP) has also lined up nearly $ 580 billion to assist farmers in adopting sustainable agriculture practices for 2021-2027. OECD statistics indicate that, while Canada located approximately 0.6% of its agricultural GDP to public agricultural R&D, the US devoted 0.8%, the UK devoted 1.8%, and China 1.1%. The world average of 0.7% further undermined Canada’s performance.
Regardless of the country's challenges, Canada's agricultural sector is advanced in many ways. The country has been ranked among the top 10 food exporters globally, earning strong sustainability marks on the Food Sustainability Index. Additionally, over 65% of farmers nationwide have implemented practices that strengthen their farms against soil, water, and biodiversity challenges.
Innovation and adopting more technology are crucial for the country to address its agricultural challenges caused by population growth, food demand, and changing climate. The prioritization of eco-friendly and climate-smart agriculture has become essential to avoiding food shortages while mitigating the effects of global crises and climate events. Increased funding from the government is required to diminish challenges for producers and tech companies, who are aimed at developing modern innovations that could help solve the growing problems.
A Unified Federal Strategy Aimed at Increasing Climate-Smart Policies and Innovations
For more information about how the Canadian agriculture sector can make a comeback and what help it will need to get there, check out AgriBusinessGlobal.com:
“A unified federal strategy is crucial for coherent policies, streamlining investments and initiatives while providing farmers with a clear path toward climate-smart agriculture. There’s a pressing need for federal-provincial collaboration. Instead of the current mishmash, a coherent system is required. A unified approach ensures a reliable path, fostering progress and development in agricultural practices.
Innovation often involves risks, and companies are willing to invest in these advancements. Similar to incentives for electric vehicles, innovative technologies in farming need support. Government intervention through co-investments in new, nascent technologies could significantly boost Canada’s agricultural sector.”
From Transforming Canada’s Agriculture Sector: A Call for Climate-Smart Policies and Investments - AgriBusinessGlobal
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Written by Agriculture Pro Source
November 27th, 2023