Farm Credit Canada invests $150M in Velocity agri-food fund

Farm Credit Canada (FCC) has announced a $150 million investment as the lead investor in the Velocity Agri-Capital Partners Fund. Spearheaded by entrepreneur Arlene Dickinson, the fund aims to raise a total of $500 million, with approximately $350 million still to be sourced from domestic and international partners.

The fund is designed as a growth-equity vehicle targeting middle-market Canadian agriculture and food companies. It seeks to bridge financing gaps for established businesses looking to expand their industrial or commercial capacities. A primary strategic goal is to shift the Canadian agricultural sector from a provider of raw commodities, such as grains and cereals, toward the production of higher-value-added processed goods.

Velocity is specifically targeting expansion into Southeast Asia, citing the region’s growing food security needs and existing trade agreements with Canada. The fund may also consider investments in Southeast Asian companies looking to establish operations within Canada. This move aligns with FCC’s broader commitment to provide $2 billion in funding by 2030 to support Canadian agricultural innovation.