Gary Mar: Why Canada Needs a New National Agriculture Strategy
Across the Prairies, farmers are voicing a consistent concern: the systems designed to move Canada's agricultural products are not strategically aligned with the needs of modern producers, the industry, or the nation as a whole. Infrastructure bottlenecks and market volatility are increasingly creating the impression that Canada is an unreliable trade partner, with too many decisions outside Canadian farmyards determining whether products ever reach market.
The Economic Stakes of Agricultural Reform
Canada possesses the fundamental components for a functional agricultural system, but significant improvements are needed in infrastructure and processes. Without a coordinated national strategy, producers and processors repeatedly absorb unnecessary risks that threaten a sector that contributed nearly $150 billion to Canada's gross domestic product in 2024, generated $92 billion in export revenues, and supported approximately one in nine Canadian jobs.
Agriculture represents a critical asset that drives export growth, productivity, and private investment at a time when Canada desperately needs all three economic drivers. The recent announcement from Farm Credit Canada pledging new capital investment to the agricultural industry marks an important step forward. This commitment, supported by billions of dollars from more than 20 investment organizations, could inspire further investment and innovation in this vital sector.
Building Consensus for Strategic Alignment
Several months ago, the Canada West Foundation convened producers, processors, business leaders, and government representatives in Regina for frank discussions about opportunities and challenges facing Canada's agri-food production, processing, and net exports. The consensus was clear: an aligned and coordinated strategy involving all sector stakeholders is essential for Canada to realize its untapped agricultural potential.
Agriculture remains a capital-intensive industry characterized by narrow margins and tight timing constraints. At the farm level, input costs continue to rise, financing terms extend longer than typical consumer loans, and weather volatility remains a constant challenge. Southern Alberta's irrigation expansion demonstrates what's possible when organizations like the Canada Infrastructure Bank collaborate with producers to share risks and employ appropriate financing tools—a model that could be replicated nationwide.
The Urgent Need for Market Diversification
As part of efforts to grow and scale operations, farmers are actively seeking widespread market diversification. While China and the United States remain Canada's two largest trading partners—economic heavyweights with substantial populations—diversification doesn't aim to replace these markets. Instead, it provides alternative destinations and stability when trade challenges or market conditions disrupt the status quo.
However, developing infrastructure to access new markets requires considerable time. Processing plants and trade corridors demand years of planning and financing before becoming operational. Simultaneously, Canada must address the paradoxical reality that selling food across provincial borders often proves more difficult than exporting internationally. When interprovincial requirements match international market standards, the system undermines domestic scale and weakens overall resilience. A serious national strategy would treat Canada as a single, unified market.
The path forward requires recognizing that agriculture represents more than just an industry—it's a cornerstone of Canada's economic future. By implementing a comprehensive national strategy that addresses infrastructure gaps, supports market diversification, and eliminates interprovincial trade barriers, Canada can transform its agricultural sector from a vulnerable component to a resilient economic powerhouse.
