Toronto, ON (November 1, 2022) – McCain Foods, a Canadian-based global leader in prepared potato products, and Farm Credit Canada (FCC), the only lender solely invested in Canada’s agriculture and food industry, have come together with a new offering to reduce financial barriers for potato farmers who are transitioning to sustainable agricultural practices.
Smart and sustainable farming is a key pillar of McCain’s commitment to be a more environmentally conscious company, anchored on its commitment to regenerative agriculture. This initiative will assist McCain in advancing its goal to implement regenerative agricultural practices across 100% of its contract potato acreage worldwide by 2030. That said, the transition to more sustainable farming practices often requires up-front investments in new equipment and practices from farmers.
This first-of-its-kind initiative in Canada will offer financial incentives to McCain potato farmers who are at the onboarding level or higher on McCain’s Regenerative Agriculture Framework. It uses a combination of funds from FCC’s Sustainability Incentive Program and McCain to issue an annual incentive to farmers for the life of the program.
“We are proud to both reward McCain potato farmers who are leading the way on regenerative agriculture and reduce financial barriers for those who are starting their journey,” says Daniel Metheringham, VP of Agriculture at McCain. “We are working together with our growers, customers, and key stakeholders to launch a range of programs that reduce the barriers to adopting regenerative practices and ultimately build resilience on Canadian farms.”
Through its Sustainability Incentive Program, FCC customers who are McCain suppliers are eligible to receive an incentive payment for their farm sustainability efforts. The calculation will be based on a portion of their total owing for eligible lending with FCC to a maximum payment of $2,000 a year. Participating McCain potato growers will also receive free access to FCC AgExpert farm management software for a year.
“Canadian agriculture producers care about their operations and are continuously evolving their production practices to ensure the long-term sustainability of their farms,” says Curtis Grainger, FCC’s Director of Lending Products and Sustainability Programs. “FCC is committed to joining them on that journey and we are working with others in the industry to find ways to support them."
Through this offer, McCain will add to the FCC incentive paid to its potato farmers, based on where the farmers are in their journey on McCain’s Regenerative Agricultural Framework. Farmers at the “Onboarding” level of the Framework will receive matching funds. For farmers at the “Beginner” level, McCain will match $2 for every dollar received from FCC. The incentive from McCain increases as farmers progress through the framework to the Master and Expert levels. The incentive offered at these levels is roughly equal to interest-free financing (assuming up to $400,000 at 4%) to a maximum payment of $14,000 from McCain and $2,000 from FCC.
“We are excited to see this new offer between McCain and FCC that rewards Canadian potato growers for their sustainable practices and provides an incentive to advance,” says Matt Hemphill, Executive Director of New Brunswick Potatoes. “The ability for expert and master regenerative farmers to receive a significant incentive reduces barriers to farm investment in an era of rising rates, increasing complexity, and escalating climate variability.”
Regenerative agriculture is an ecosystem-based approach to farming that aims to improve farmer resilience, yield and quality by restoring soil health, enhancing biodiversity and reducing the impact of synthetic inputs.
To ensure that regenerative agriculture is both feasible and economically viable for farmers, McCain is testing its practices and principles and experimenting with new equipment and technology with its Farms of the Future project, the first of which is located in McCain’s hometown of Florenceville, New Brunswick.
About McCain Foods (Canada)
McCain Foods (Canada) is the Canadian division of McCain Foods Limited, an international leader in the frozen food industry. McCain Foods is the world's largest manufacturer of frozen potato specialties, and also produces other quality products such as appetizers, vegetables and desserts that can be found in restaurants and retail stores in more than 160 countries around the world. In Canada, the company has eight production facilities with approximately 2,400 employees and, in addition to its famous French fries and potato specialties, makes frozen desserts, snacks and appetizers.
About Farm Credit Canada
Farm Credit Canada is Canada’s leading agriculture and food lender, with a healthy loan portfolio of more than $44 billion. Its employees are dedicated to the future of Canadian agriculture and food. It provides flexible, competitively priced financing, AgExpert management software, information and knowledge specifically designed for the agriculture and food industry. As a self-sustaining Crown corporation, it provides an appropriate return to shareholders, and reinvests its profits back into the industry and communities it serves. For more information, visit fcc.ca.