The numbers tell a compelling story: Canada’s agri-food system generates over $143 billion in GDP annually, employing 2.3 million Canadians and rivaling the economic footprint of our automotive sector. Yet, when we talk about economic powerhouses driving our national prosperity, the conversation often centers on manufacturing, energy, or technology—rarely the farms and food processors quietly feeding both our population and our economy.
As I discovered while investigating the economic impact of our agricultural sector, the scale of this industry remains underappreciated by many Canadians, including policymakers who might otherwise prioritize its growth potential.
“Agriculture isn’t just about feeding people—it’s about feeding our economy,” explains Dr. Sylvain Charlebois, Director of the Agri-Food Analytics Lab at Dalhousie University. “When you combine primary agriculture with food processing, distribution, and retail, you’re looking at a sector that touches nearly every region of the country with substantial multiplier effects.”
Those multiplier effects translate to approximately one in eight jobs nationwide. The sector’s reach extends far beyond rural communities, with food manufacturing facilities employing tens of thousands in urban centers from Mississauga to Montreal.
What makes these numbers particularly significant is the sector’s resilience. During the 2020 pandemic disruptions, when many industries contracted sharply, food production remained relatively stable—a testament to both its essential nature and adaptive capacity.
Farm Credit Canada’s latest economic outlook report indicates that despite inflation pressures and supply chain challenges, Canadian agricultural exports hit record levels last year, with particular strength in canola, wheat, and processed food products. This export orientation means the sector brings new money into the Canadian economy rather than simply recirculating existing dollars.
But the story isn’t uniformly positive. Speaking with small-scale producers at Ontario farmers’ markets reveals a more nuanced picture of the industry’s health.
“The economic impact numbers look impressive at the macro level, but they mask significant challenges for smaller operations,” notes Jennifer Doelman, who operates a family farm near Renfrew, Ontario. “We’re seeing continued consolidation, with fewer farms producing more output, while input costs climb faster than commodity prices.”
This consolidation trend reflects both market forces and productivity improvements. Advanced mechanization, precision agriculture techniques, and genetic improvements allow modern farms to produce more with fewer workers—a technological transformation similar to what we’ve seen in manufacturing.
The processing side of the equation presents both opportunities and obstacles. Canada exports roughly half of its agricultural production, yet much of that leaves as raw commodities rather than value-added products. Industry advocates point to regulatory hurdles and capital constraints that limit domestic processing capacity.
“We’re essentially exporting jobs along with our commodities,” says Kathleen Sullivan, CEO of Food and Beverage Canada. “Every time we ship raw materials instead of processed goods, we’re missing an opportunity to multiply the economic benefits within our borders.”
This processing gap has prompted calls for a national agri-food strategy that would address structural barriers to growth. The federal government’s Innovation Superclusters Initiative includes the Protein Industries Supercluster focused on plant proteins, but industry representatives argue more comprehensive approaches are needed.
Economic considerations aside, the sector faces transformational environmental challenges. Agriculture accounts for approximately 10% of Canada’s greenhouse gas emissions according to Environment and Climate Change Canada data, placing it at the intersection of food security and climate policy.
Progressive producers are adopting regenerative farming practices that sequester carbon while improving soil health. These methods could potentially transform farms from emission sources to carbon sinks, creating new revenue streams through carbon credits while addressing environmental concerns.
“The farms of 2030 won’t look like today’s operations,” predicts Laura Reiter, a Saskatchewan grain farmer and agricultural economist. “We’re seeing the convergence of precision technology, biological innovations, and environmental imperatives that will reshape what and how we produce.”
This evolution brings enormous economic implications. The World Economic Forum estimates the global market for alternative proteins alone could reach $85 billion by 2030. Canada’s clean technology sector sees agriculture as a major growth vector, with companies developing everything from biological crop inputs to emission-reduction technologies for livestock operations.
What does this mean for Canadian consumers and communities? Beyond stable food supplies, a thriving agri-food sector creates economic resilience through diversification. Regions with strong agricultural bases typically weather economic downturns better than those dependent on single industries.
For urban Canadians who might view farms as distant and disconnected from their lives, understanding the sector’s economic footprint provides context for policy discussions around land use, water rights, and rural infrastructure. The prosperity of our cities and our countryside are deeply intertwined through these economic relationships.
The data suggests Canada’s agri-food system deserves greater recognition in national economic planning. With global food demand projected to increase by 50% by 2050 according to United Nations estimates, few sectors offer comparable long-term growth potential.
As consumers push food companies toward greater transparency and sustainability, Canadian producers are well-positioned to deliver both—provided they receive appropriate policy and investment support. The question isn’t whether agriculture matters to our economy, but whether we’ll capitalize on its full potential in the decades ahead.
For a sector that feeds us daily, it’s time we fed it the attention it deserves.
