Canadian agriculture faces opportunities and challenges as it seeks to boost productivity in an ever-evolving economic environment. J.P. Gervais, Vice President of Strategy and Impact at FCC, recently outlined the critical factors shaping the industry during two specific farm events in Winnipeg, MB.
From inflation and interest rates to commodity prices and trade tensions, Gervais emphasized the importance of improving efficiency, scaling operations, and fostering innovation. He stressed that productivity growth in the sector has plateaued, and addressing these challenges is key to ensuring future success in Canadian agriculture and food production.
One attendant liked Gervais’s outlook for Canada’s Ag sector, which combined data and insights. The main focus was on the importance of productivity growth in agriculture—improving efficiency, scale, or innovation. He noted that Canada lags behind the U.S. in productivity, particularly after hitting a plateau in recent years. This aligns with the challenges in the hog industry, where returns on investment have been tough to come by, especially in Western Canada.
Gervais said productivity growth has slowed over the last 10 to 20 years.
“Productivity sounds like a boardroom term, but it’s about producing more with fewer inputs. This slowdown impacts profitability and competitiveness, raising concerns about Canada’s role as a world leader in agriculture,” he said.

He also stressed the importance of innovation, efficiency, and scaling operations to rekindle productivity growth in the sector.
“The low-hanging fruits are gone. We’ve made great strides in productivity and sustainability, but now we must innovate further.”
Gervais stressed the importance of adopting new technologies such as automation and data analysis, including A.I. and precision agriculture. He also emphasized the role of financial institutions in providing capital solutions to help farmers grow sustainably, allowing the industry to meet future productivity demands.
J.P. emphasized the importance of facilitating technology adoption in farming, acknowledging that while early adopters integrate innovations like A.I. and precision agriculture, the broader industry still needs support.
“It’s that second wave of farmers,” he said, “who may be hesitant about how technology fits their farm’s size or business model.”
Gervais highlighted the need for collaboration across government, businesses, financial institutions, and suppliers to encourage widespread adoption of existing technologies, positioning it as a critical step toward improving productivity in Canadian agriculture.
Gervais pointed to the aging population as a key issue. “The farm sector is no different than the overall Canadian trend stressing that future labour shortages are inevitable.”
It’s important to reduce the dependence on labour through automation while recognizing the need for highly skilled labour. “We won’t be able to automate everything, and the labour required will need greater expertise due to the sophistication of data and technology driving production.”
Streamlining efforts toward automation is essential for the future of Canadian agriculture. Adopting advanced technologies and automating as much as possible is the right direction to mitigate labour shortages and enhance productivity. “Every step we take now to implement automation and adopt new technologies will be crucial in securing long-term success for the industry.” This approach aims to reduce dependence on labour and elevate the skills required for farming operations.
The hog industry has seen positive profitability in 2024, primarily driven by lower feed prices. However, the industry expects the margins to tighten as we look toward the end of 2024 and into 2025. The global economy is slowing down, impacting demand in export markets, which is crucial for pork producers. Although 2025 might bring a more sustained global demand, any rise in feed prices could negate the benefits, making profitability harder to maintain. The hog industry remains volatile, where efficiency is essential due to consistently tight margins.
Lower interest rates will likely boost the farm sector overall. Three Bank of Canada rate cuts are already in 2024, and two more are expected by the year’s end, followed by up to five additional cuts projected for 2025, which could ease the burden on producers. High interest rates have hindered further investments in farm productivity. Still, as rates decrease, more favourable conditions should be created for producers to invest in equipment, technology, and other productivity-enhancing tools, helping to drive growth in the sector. •
— By Harry Siemens