“We’re the breadbasket of the world,” said Minister of Agriculture and Agri-Food Heath MacDonald MacDonald. “We need to lead in that aspect … and this is just a start.”

Macdonald announced the investment at Canada’s Future of Food day in Ottawa. The announcement builds on a previous commitment of $2 billion from FCC.

WHY IT MATTERS: Canadian agriculture and food businesses have historically struggled with a lack of venture capital.

FCC is set to deploy $325 million in new capital this fiscal year, the lender said in a news release. It said the cash will “bring new innovation to Canadian farmers through investments in innovative Canadian businesses, construction and project finance opportunities, and early-stage ag-tech companies.”

Darren Baccus, executive vice-president of Agri‑Food, Alliances and FCC Capital, said the investment will strengthen domestic food security and accelerate Canada’s rise as an agricultural superpower.

“By bringing this coalition together, we’re crowding in the capital needed to scale breakthrough solutions and deliver the next generation of innovation directly to Canadian producers.”

A ‘compelling investment proposition’

MacDonald credited Justine Hendricks, president and CEO of FCC, for beginning the process that would lead to this investment.

“The first time I met Justine was in Saskatchewan. I then, shortly after in July, flew to Toronto and she set me up on the meeting with seven investors,” MacDonald said.

“I believe two of them were U.S., five were Canadian venture capital (and) equity firms, and that started the discussion.”

Power Sustainable Lios, a food-focused private equity firm, is one of the 20 companies to pledge investment.

”Canada’s food sector represents a compelling investment proposition,” said Jonathan Belair, the firm’s managing partner, in a news release.

Canadian food and agriculture benefits from strong fundamentals like a “globally respected production base and a growing pool of innovative companies, the news release said.

Struggle for venture capital

In early 2025 FCC’s investment arm, FCC Capital, pledged $2 billion of investments into agtech innovation by 2030. Hendricks at the time said investment dollars for the agtech sector have been “scarce and not scaled to meet the increasingly sophisticated needs of the sector.”

Canadian agriculture and food companies have historically struggled with a lack of venture capital.

—With files from Geralyn Wichers

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“Canada and Mexico share a strong partnership shaped by years of collaboration and more than three decades of free trade,” said MacDonald in a news release, adding “this trip is about further strengthening our ties, developing relationships, and creating opportunities that will drive growth and prosperity in both of our nations.”

Between October 14 and 17, MacDonald will meet with Julio Berdegué, Mexico’s Secretary of Agriculture and Rural Development, and Javier Calderon, the Head of Mexico’s National Health Safety and Quality Service. Talks will focus on diversifying and growing trade between the two nations, said the release.

MacDonald will also meet with local business leaders and stakeholders “to promote Canadian agricultural and agri-food products, strengthen bilateral relationships and explore opportunities of mutual interest.”

This visit will seek to further strengthen Canada’s bilateral relationship and expand agricultural co-operation. It comes following a September meeting between Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum, where the Canada-Mexico Action Plan 2025-2028 was announced.

In Mexico City, MacDonald plans to connect with provincial counterparts and industry representatives attending the Tri-National Accord later that week. MacDonald will also travel to Guadalajara to continue his outreach with key Mexican stakeholders.

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The ministers met with growers in Manitoba and informally with leaders of the canola organizations ahead of their annual federal-provincial-territorial meeting earlier this month. Both of Canada’s main canola organizations are unhappy with recently announced support they say falls short in the face of the closed Chinese market. The entire sector wants Canada to negotiate an end to the tariffs.

“As we sat around the table and had a heart-to-heart discussion, they realized the challenges we’re facing,” said Manitoba Agriculture Minister Ron Kostyshyn.

WHY IT MATTERS: It’s widely believed China imposed the tariffs in response to Canada’s 100 per cent tariff on electric vehicles from that country. Canada’s decision was made to fall in line with the United States.

Federal ag minister Heath MacDonald said the government responded with support to alleviate pressure in the sector. It includes an increase in the interest-free portion of cash advances to $500,000 for canola growers. However, some say more debt is not support.

“We fully understand that this is not going to resolve any of the issues, but we feel that it’s important because some farmers will take advantage of that,” he said during the closing news conference.

MacDonald said farmers need to know the government has their backs and will continue to do so.

“Farmers supported this to some extent but also what they want is … the markets open,” he said. “We got that message.”

The ministers were not briefed on the recent trade mission to China by Saskatchewan premier Scott Moe and Kody Blois, the prime minister’s parliamentary secretary.

MacDonald said the federal government would take the situation day-by-day.

“It’s a very fragile situation that we find ourselves in with the Chinese, but having Premier Moe in China and officials engaging at the highest level is important to get this resolved as quickly as possible,” he said.

He said the support offered for biofuels is one step in a process that will take some time. Amendments to the Clean Fuel regulations will also be done alongside canola producers, he added.

“We need to know what those amendments need to be relevant to and ensure that we’re doing everything possible that’s going to expedite those,” MacDonald said.

Asked if dropping the tariffs on Chinese electric vehicles would help the canola sector, the federal ag minister said the government is reviewing that policy.

He also didn’t rule out more funding for canola growers.

MacDonald described the situation as volatile and said government has to make sure each decision it makes doesn’t jeopardize another situation.

He was also asked about requests to ban used cooking oil from China for use in biofuels. MacDonald said it is on the government’s radar but the time might not be right to raise it with China.

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MacDonald was sworn in as minister May 13 at Rideau Hall as part of prime minister Mark Carney’s first cabinet shuffle since the election.

He said the news of his new role came as a surprise even to him.

“In this business, you just never know … where you’re going land,” he said.

“We went through an election, and you’re kind of decompressing from that, and all of a sudden, Mr. Carney gave me the call, and here I am.

“First of all, you’re excited, obviously, and then the nervousness sets in, you start to think, ‘oh, wow, this is a pretty big event.’ ”

Macdonald represents the riding of Malpeque in Prince Edward Island.

“Farming, coming from the rural part of the country, is obviously on my plate each and every day,” he said.

“So, it’s not unprecedented to be in the middle of the farming issue.”

He said he hopes to have discussions with farmers and provincial ministers across the country to build trust and better understand the issues facing different regions.

“I could sit here and read binders all day, but boots on the ground, I can’t wait to get out of Ottawa, to be quite honest with you, and meet some of these farmers and these provincial ministers as well, to ensure that they understand who I am and what I’m made of, and what I can try to contribute to their success.”

MacDonald previously served on the House of Commons agriculture committee. He said this work allowed him to make valuable connections, including the Canadian Federation of Agriculture, the Canadian Cattle Association and the Canada Grains Council.

“The handshakes and the friendliness (are) there,” he said.

“We just need to get to work together now on some bigger issues.”

He said he hopes to use these connections to facilitate conversations across regions, including in-person meetings:

“It’s all about understanding their needs and ensuring that they know that I’m accessible.”

Before being elected to the House of Common s in 2021, MacDonald served as finance minister in the P.E.I legislature. He said this experience could be an advantage in his new role.

“It allows me to have a better understanding of the financial resources required to progress the farming community and allows me to speak freely on certain things that maybe some others might not be aware of.”

In addition to his role as agriculture minister, MacDonald was named to several government committees, including the Build Canada committee, which considers issues of economic productivity, including housing and climate action.

While MacDonald said he hasn’t had time yet to be fully briefed on what the committee will entail, he expects some agricultural concerns to carry over into Build Canada, specifically labour force issues.

“I’ll be front and centre with agriculture, ensuring that every decision that is made that they are well aware of the effects it has on the agri-food and agriculture portfolio,” he said.

“That’s my job, to ensure that we’re heard at the cabinet table, and that’s what I intend to do.”

One issue he said he hopes to engage other ministers on is interprovincial trade, which he called a high priority for the government.

Two of the major policies Canadian farmers are hoping to see action on are a formal reversal of the capital gains tax changes and a permanent removal of the carbon tax for on-farm activities.

“On both those issues, I believe the decisions that Mr. Carney came out with, it’s the right decision.”

“I think we were very clear on the carbon tax and eliminating it all together,” MacDonald said, and pointed out he was one of the few Liberal MPs to support Bill C-234, a private members bill that proposed carbon exemptions for some on-farm activities.

MacDonald also said he is aware of concerns around red tape and regulatory burdens. This includes reforms to the Pest Management Regulatory Agency, which he says he will be pursuing.

“There’s lots of issues right across the board, and we need to take each and every one of them and categorize them on the importance to those industries,” he said,

“And that’s what we’ll do.

“The lines of communication are open, and we’ll continue to have those discussions, and then bring it back to Ottawa and have those discussions with the bureaucrats, whether it’s CFIA or the department, or whoever needs to hear it, they’re going to hear it.

“I’m knee deep-in this stuff right now … but you learn and live every day, and we’ll just keep progressing forward.”

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It was announced that MacDonald would inherit the role at the first post-election cabinet shuffle under prime minister Mark Carney May 13.

Macdonald represents the riding of Malpeque in Prince Edward Island, just west of Cardigan, the riding previously held by former agriculture minister Lawrence MacAulay. MacDonald has previously served on the House of Commons agriculture committee.

Provincially, he served as finance minister in P.E.I.

Before getting involved in politics, he worked in the province’s tourism sector.

Industry urges immediate action

In a written statement, Grain Growers of Canada welcomed incoming members of cabinet, including MacDonald, while also urging “immediate action to support grain farmers and protect the viability of the sector.”

Executive director Kyle Larkin said GGC has worked productively with McDonald in the past.

“We’ve had conversations on a number of different topics, be they carbon taxation or capital gains tax, or even ag research,” Larkin said.

“He’s always been someone who comes to the table or brings the perspective of that finance business background.”

The Canadian Federation of Agriculture welcomed MacDonald specifically in its own written statement released shortly after the cabinet shuffle, saying it is eager to work with him.

“We look forward to a productive relationship with minister MacDonald. Canadian agriculture is a critical juncture, with the recent dramatic rise of trade uncertainty, while combatting high costs and more frequent extreme weather events” CFA president Keith Currie, said in the statement.

“During the recent election, CFA has made the priorities of Canadian farmers very clear. Farmers need to see a focus on competitiveness, resiliency and maintaining rule-based trade.”

The Canadian Agri-Food Trade Alliance likewise expressed its intent to work with MacDonald in the future.

Make food security a priority

Fruit and Vegetable Growers of Canada executive director Massimo Bergamini said in a written statement that the organization looks forward to working with MacDonald and the new cabinet on shared goals for the sector.

“Fresh, quality and nutritious fruit and vegetables don’t grow themselves — policies that support growers are as important as soil, water and sun,” said Bergamini.

“The federal government must act quickly to deliver modern business risk management and mitigation programs, predictable access to labour, effective and safe crop protection tools, investment in greenhouse agriculture and trade policy that reflects the realities of a perishable, seasonal sector.

“With one in five households struggling with food security and visits to food banks at an all-time high, the government’s election commitment to making food security a priority in this new Parliament is one Canada’s fruit and vegetable growers can get behind.… We stand ready to work with agriculture minister MacDonald and all parliamentarians on this shared priority.”

Minister should get to know rest of country

MacDonald is the third straight agriculture minister from Atlantic Canada and the second of those three from P.E.I, meaning regional representation could still be a problem. Larkin said MacDonald should undertake early efforts to better understand farming across the country.

“When Parliament rises at the end of June, I would very much recommend that he goes on a tour across Canada to meet with producers in every single province, to understand the issues that they’re facing.”

“Farming in Saskatchewan on a 5,000-acre farm is certainly different than farming on a farm in Ontario that may only be 400 acres — different crops, different soil conditions, different weather patterns,” Larkin said.

“I very much recommend he gets out there to meet with as many producers as possible across the country so that he can come back in the fall with a full perspective of all the issues.”

In the West, the Agricultural Producers Association of Saskatchewan said in a statement it is “particularly pleased to welcome the honourable Heath MacDonald as Canada’s new minister of agriculture and agri-food and is eager to work collaboratively on advancing policies that support Saskatchewan producers and enhance the national agricultural sector.”

Grain Farmers of Ontario said it “looks forward to continuing its work with the federal government to ensure a policy environment that enhances the sector’s global competitiveness.”

The organization also thanked outgoing minister Kody Blois, who briefly held the role starting March 2025.

Blois departure a surprise

Blois’s departure may have been a surprise to much of the agriculture world, where many farmers and commodity groups previously expressed their support for him.

Agri-Food Innovation Council chief executive officer Serge Buy also said he thought Blois was “extremely qualified and competent for the role.”

Larkin said it came as a surprise to see Blois not returning to the file.

“He has and had a very good reputation, not only with groups in Ottawa, but actually producers across the country, farmers I’ve spoken to, be they in the Prairies or be they out east.”

Still, he said there was reason to hope for positive changes under MacDonald, though it may take time for him to win the trust of producers.

“Many of the producers that we represent don’t know who Heath McDonald is,” he said.

“But I think he does have the next few months to build his profile with the sector and meet with as many producers as possible. And that’s why I think it’s important for him to get out this summer to really connect with folks.”

Larkin said the two quick policy changes he hopes to see MacDonald push for are a formal reversal of the capital gains tax changes and a permanent removal of the carbon tax for on-farm activities.

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