Energy The Next Valuable Farm Crop?

Nov 22, 2012

Farm Credit Canada Report Highlights How Energy is an Opportunity for Agriculture

Have you ever thought to yourself – what can I do to add more value to my farm? The answer might be energy!

According to a report released by Farm Credit Canada (FCC), the evolving energy landscape means that there is a unique opportunity for Canadian agriculture. The FCC report says that Canada’s agriculture industry “is in a unique position to meet changing global energy demands.”

“Two things are for certain,” says Kellie Garrett, Senior Vice-President of Strategy, Knowledge and Reputation with FCC. “One, the global population continues to grow, and two, this growth means an increased need for food and affordable energy to sustain us. Agriculture depends on energy and also has the ability to produce it. “

Experts predict that in less than 40 years, the world will need 70 per cent more food to feed a projected global population of nine billion people. With that in mind, FCC also predicts that the technological breakthroughs will bring a mix of renewable and non-renewable energy sources which will complement the increased demand for not only food but fuel.

While bringing renewable energy projects to your farm can be an opportunity - it should also be preceded with caution, because adding an energy crop to your farm can be risky. The FCC report suggests that producers need to understand the tension between the need for sustainability and profitability and how that relationship will have an impact on future agriculture energy trends.

The FCC report says farmers should be monitoring trends in three key areas:

1.Innovations in science and technology
2.Changing policies and principles
3.Volatile markets

“Never has Canadian agriculture mattered more to Canada and the world,” Garrett says. “And, nothing is better than sharing knowledge and learning from others in the industry."

The latest issue of FCC's Knowledge Insider (www.fcc.ca/insider) shares insights about how farmers and agribusinesses can prepare for success in a changing energy world. More information can be found on their website at www.fcc-fac.ca

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