Key facts
- Farm Credit Canada (FCC) launched a C$1 billion Agri-food Project Finance initiative.
- The initiative aims to expand Canada's agri-food processing and manufacturing capacity.
- The fund is part of the Government of Canada’s National Food Security Strategy.
- Projects funded will focus on strengthening domestic supply chains and improving food security.
- FCC is seeking expressions of interest for construction-ready infrastructure projects.
- The initiative is designed to support projects that may face challenges with conventional lending.
Farm Credit Canada (FCC) has launched a new C$1 billion Agri-food Project Finance initiative, inviting organizations to submit expressions of interest for major agri-food processing and manufacturing projects across Canada. This specialized financing aims to bolster the country's food system by expanding domestic processing capacity, strengthening supply chains, and enhancing long-term food security, aligning with the Government of Canada’s National Food Security Strategy.
The initiative is designed to address a gap in conventional lending, supporting construction-ready infrastructure projects that are crucial for creating more value-added Canadian agricultural products. Many of these projects require significant investment and may be considered too complex or challenging for traditional financing methods.
Minister of Agriculture and Agri-Food, Heath MacDonald, highlighted that the fund, alongside a C$150 million investment in Velocity Agri-Capital Partners, will empower Canadian agri-food businesses to undertake ambitious projects. Justine Hendricks, president and CEO of FCC, emphasized that the Agri-food Project Finance initiative will unlock key projects necessary for a stronger, more resilient, and self-reliant Canadian food system.
This C$1 billion fund complements FCC's existing commitment of C$2 billion to boost food and agriculture innovation by 2030 through its investment arm, FCC Capital. Previously, FCC secured commitments totaling C$5 million from twenty private equity investors, including the Royal Bank of Canada, for its broader investment efforts in the sector.