The federal government is launching a new $1 billion financing fund aimed at expanding Canada’s agri-food processing and infrastructure capacity, alongside a separate $150 million investment in an agri-food and agri-tech growth fund.
Agriculture Minister Heath MacDonald announced Monday that Farm Credit Canada will deliver the new Agri-food Project Finance Fund, which is intended to support capital-intensive, mid-market projects across the country. The fund is part of the federal National Food Security Strategy and is designed to close financing gaps for projects involving processing, infrastructure and technology.
The government said the fund will help more projects move from concept to construction while increasing domestic processing capacity and strengthening Canada’s value-added food sector.
At the same time, FCC Capital will invest $150 million in Velocity Agri-Capital Partners, a growth equity fund focused on agri-food and agri-tech companies across the value chain. The investment is expected to support commercialization, processing expansion, supply-chain diversification and export growth.
Velocity, led by Arlene Dickinson, is also in discussions with Canadian and international investors about raising up to an additional $350 million. The fund is targeting companies positioned to expand in North America and into Southeast Asian markets.
MacDonald said the investments are intended to strengthen food security while helping Canadian agri-food businesses scale up.
“This new $1 billion fund, combined with the $150 million investment in Velocity Agri-Capital Partners, will help Canadian agri-food businesses bring ambitious projects to life, expand processing capacity, and grow value here at home,” he said.
The new financing builds on FCC’s broader commitment to invest $2 billion by 2030 in innovation and value-added agriculture. In February, FCC also announced a coalition of more than 20 investment organizations collectively prepared to deploy up to $5 billion into Canadian agriculture and food innovation by 2030.
The National Food Security Strategy, announced in June, is backed by more than $3 billion in investments over 10 years and is intended to improve affordability, productivity, innovation and resilience across the food system.
The first phase of expressions of interest for the new Agri-food Project Finance Fund opened Monday.
