A Case for Reinforcing Agri-food Research and Development Spending:

Spending on global agricultural research and development (R&D) increased from $31 billion in 2000 to $47 billion in 2016, highlighting the sector’s critical role in addressing food security, climate adaptation and economic competitiveness While countries like China, Brazil and Australia have made strategic investments that drive innovation and sustainability, Canada’s agricultural R&D spending has declined significantly, falling from $0 86 billion in 2013 to $0 68 billion in 2022 This reduction has left Canada ranking lowest among the top seven OECD countries in agricultural R&D expenditures, jeopardizing its global competitiveness and resilience

This policy brief looks at global trends, analyzes Canada’s relative under-performance and proposes strategies to revitalize its agricultural R&D framework Canada needs increased investment, including a federal government commitment to spending at least 1 5 per cent of AgGDP on agricultural R&D to support innovation, productivity and sustainability Investing in agricultural R&D yields significant long-term returns Meta-analyses show a global median return on investment (ROI) of 10:1, and the benefits include increased crop yields, reduced input costs and better climate resilience However, R&D investments often require long-term commitment, as returns take decades to manifest Ottawa must prioritize funding and strategic partnerships to capitalize on these high returns and avoid losing its competitive edge

Climate change, evolving market demands and resource constraints all pose challenges for Canada’s agricultural sector Increased investment in R&D will enhance productivity, strengthen food systems, create high-skill jobs and align agricultural practices with sustainability and climate goals Failure to act risks lessening Canada’s role in global agricultural innovation, food security and competitiveness