Key facts
- Investors are showing interest in regenerative agriculture.
- A summit in Winnipeg discussed how capital can support resilient food and farming systems.
- Farmers require financing that matches long payback periods and tight margins.
- Land prices in some areas can range from $4,000 to $8,000 per acre.
- New farmers often need support like training and business planning before conventional financing.
- Philanthropic capital is suggested for new farmers in a pre-lending stage.
The Regenerative Food Systems Investment Canada summit, held in Winnipeg from May 26-27, aimed to bridge the gap between investor interest in regenerative agriculture and the practical financial needs of farmers. Amr Addas, a senior director at Farm Credit Canada (FCC), highlighted a Boston Consulting Group report estimating over US$300 billion in global investment opportunities tied to regenerative agriculture, suggesting a "generational opportunity" to build a resilient food system in Canada.
However, discussions on a farmer panel moderated by Dana Penrice revealed significant challenges. Farmer Chelsi Beernaert emphasized the substantial capital required for farm succession, noting land prices can range from $4,000 to $8,000 per acre, translating to $640,000 to $1.2 million for a quarter section, not including equipment costs. She raised concerns about who carries risk and maintains control with outside investment.
For new farmers, Afua Asantewaa, executive director of Inclusive Prosperity, pointed to barriers such as lack of affordable land and access to "patient" or "catalytic" capital, which implies a higher tolerance for risk and slower returns. Sara Dent, co-founder of Young Agrarians, advocated for philanthropic capital, stating that many new farmers are in a pre-lending stage requiring training, business planning, and land access support before they qualify for conventional financing.
Addas acknowledged that traditional lenders like FCC have a role but stressed the need to understand regenerative agriculture as a long-term resilience issue, with practices needing to be regionally appropriate and cost-effective. He concluded that while money is available, its usefulness depends on its fit with farmers' specific needs, including long payback periods, tight margins, and succession pressures, and that lenders must accept and find ways to support the inherent risks in the sector.