London, Ont. (Rural Roots Canada) – The federal government is launching a $1-billion fund to finance agri-food infrastructure projects across Canada as it looks to strengthen domestic food security and expand the country’s value-added food sector.
Agriculture Minister Heath MacDonald announced Monday the launch of Farm Credit Canada’s Agri-food Project Finance Fund, along with a $150-million investment in Velocity Agri-Capital Partners through FCC Capital’s $2-billion investment commitment.
The $1-billion fund is part of the federal government’s National Food Security Strategy and will provide financing for mid-market, capital-intensive agri-food infrastructure projects.
The government says the fund will help address financing gaps for complex projects, support critical infrastructure and technology, increase domestic food processing capacity and allow more projects to move from concept to construction.
The $150-million investment in Velocity Agri-Capital Partners will target opportunities in the agri-food and agri-tech sectors across the value chain that can strengthen Canada’s food system.
The government says the investments are intended to accelerate commercialization, expand processing capacity, diversify supply chains and create international opportunities for Canadian companies.
Read more: Feds launch $20m food security fund as part of its National Food Security Strategy
“By investing in innovation and infrastructure, we’re supporting producers and ensuring Canada’s food system is resilient for the future,” MacDonald said in a statement.
FCC previously committed $2 billion by 2030 to support value-added projects that expand processing capacity and strengthen domestic supply chains. In February, it also announced a coalition of more than 20 investment organizations prepared to deploy up to $5 billion in Canadian agriculture and food innovation by 2030.
The National Food Security Strategy, announced in June with more than $3 billion in planned investments over 10 years, is aimed at improving affordability, productivity and innovation while strengthening the food system’s resilience.
The first phase of expressions of interest for the FCC fund opened Monday.
