The51 Food and AgTech Fund announces Farm Credit Canada as their lead investor and initial retail close

Aug 09, 2022

Farm Credit Canada (FCC) has signed on to be the lead investor in The51's Food and AgTech Fund, focused on investing in underrepresented founders transforming the business of food and agriculture.

CALGARY, AB - The51 is pleased to announce FCC as the lead investor of The51 Food and AgTech Fund (The Fund), a women-led fund investing in science-based technology entrepreneurs innovating from lab to plate. The $50 million Fund is led by a General Partnership between The51's Co-founders Judy Fairburn and Shelley Kuipers, alongside AgTech pioneer Alison Sunstrum and fund Principal Yuan Shi.

The initial close of The Fund is a unique convergence of The51's community capital (retail investors) and institutional investors working together with founders who are addressing and solving serious global issues. While setting a high bar in developing the investment thesis and reporting processes, the General Partnership believes The Fund will generate market competitive returns while creating positive change for underserved founders and the planet.

"There is no better time to invest in agriculture," says Sunstrum. "Technology financing in AgTech has been growing for the past 15 years, and despite current funding slowdowns in other markets, investment in AgTech continues to outperform."

As recent geopolitical events create challenges in global food insecurity, growth in AgTech investment is being driven by a longer-term interest in productivity gains, reduction in environmental impact and improved farm operator and animal well-being.

"To have Farm Credit Canada on the journey with us is a significant milestone," shares Sunstrum. "FCC has had an unwavering commitment to Canadian agriculture for more than 50 years, and in Canada, agriculture matters."

"The continued success of the Canadian agriculture and food industry relies on its ability to adopt technology, attract a skilled and diverse labour force, and embrace sustainability, all of which supports profitability and productivity in this vital sector of our economy," said Rebbecca Clarke, vice-president of FCC venture capital. "FCC is pleased to support The51 Food and AgTech Fund which will bring fresh thinking to support a diverse group of entrepreneurs through investment in new technology that will help this sector grow and thrive."

FCC is committed to matching institutional and retail capital as The51 approaches the next close for The Fund, set for fall 2022. With a focus on underrepresented founders of all genders who are driving diversity, equity and inclusion, The Fund has gathered a pipeline of hundreds of prospective ventures and will begin investing this September in early-stage companies to help them scale to Series A and beyond.

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Video: The 15-Year Bet Behind Every New Variety!

Canada is trying to decide how much agricultural research capacity it can afford to lose. Brian Rossnagel believes the better question is whether the country can afford to rebuild it.

The longtime barley and oat breeder makes the case with a simple fact about his profession: the consequences of today’s decisions may not become visible for 10 or 15 years.

“Pick the right parents. That’s the biggest thing,” Rossnagel says. “If you pick the wrong parents, you’re not going to get anywhere—and you don’t know that until 10 years, 15 years later.”

That warning carries particular weight as Agriculture and Agri-Food Canada moves to reduce spending and streamline parts of its science operations. The department’s 2026–27 plan anticipates the loss of approximately 665 positions by 2028–29 and says some research will be reduced where capacity exists in academia or industry. AAFC says the changes will make its science operations more cost-effective over the long term.

For Canada’s seed industry, Rossnagel’s career illustrates what is at stake.

This fall, the retired University of Saskatchewan breeder will be inducted into the Canadian Agricultural Hall of Fame. During his 35-year career at the Crop Development Centre, he helped develop more than 100 barley and oat varieties, including CDC Austenson—one of Western Canada’s most widely grown feed barleys. His induction recognizes not only those varieties, but the collaboration and research system that made them possible.

Rossnagel is quick to emphasize that none of it was the work of one person.

“The first thing I thought about was all the other people who contributed to whatever success I and my program had over the years,” he says. “We know that it’s not an individual who does this. It’s a group—a team.”

That team extends well beyond the breeder whose name appears beside a variety. It includes technicians, pathologists, quality specialists, statisticians, regional testing sites, seed growers and industry partners. It also includes the breeders who came before and those who will carry the germplasm forward.

CDC Fraser barley, for example, moved through three breeding careers. Its parents came from Brian Harvey’s program. Rossnagel advanced the material after Harvey retired, and Aaron Beattie later guided it through registration and release.

That kind of handoff is normal in plant breeding. The person who makes the original cross may never see the resulting variety reach farmers.

It also explains why lost research capacity cannot simply be switched back on when budgets improve.

“If you shut it off, it’s very, very difficult—and particularly costly—to start it up again,” Rossnagel says. “If you have to start from scratch, it’s going to be at least 10 years before anybody notices whether you’re getting anything done or not.”

The concern is not simply how many experimental lines Canada can process. Modern equipment, statistical tools and genetic technologies allow today’s breeding programs to evaluate tens of thousands of lines—far more than Rossnagel could handle when he entered the field in the early 1970s.

But efficiency and automation do not generate every idea.

“If you pare back down, and instead of having six or seven individual scientists concentrating on wheat breeding, you go down and say three people could handle all this, well, that’s half the ideas gone,” he says. “Particularly if you happen to lose the three people who had the really neat and innovative ideas, boy, that’s a problem.”

It is a timely distinction for Canadian agriculture. Consolidating programs may preserve the volume of material moving through a system, at least initially. It may not preserve the diversity of thinking, regional knowledge or willingness to pursue unconventional crosses.

That regional knowledge matters because Canadian agriculture is not one uniform production environment. A variety suited to southern Alberta may face different disease, moisture and maturity pressures than one grown in Manitoba, Ontario or Atlantic Canada.

“Agriculture is applied biology,” Rossnagel says. “Biology, all around the Earth, moves from the poles to the equator. It does not move from Newfoundland to B.C. like politics do.”