Canada’s ag equipment manufacturers: Global reputation for innovative farm machinery
AMC’s member companies have earned a reputation for producing the highest-quality, most sought-after agricultural equipment in the world.
Canadian farmers lead the world in the adoption of new technologies and sustainable farming practices
Canadian farm equipment manufacturers have risen to the challenge, matching the pace of innovation and leading the world. ‘Made in Canada’ doesn’t just refer to the communities all across the country where you will find ag manufacturers. When it comes to farm equipment, ‘Made in Canada’ is a reputation — hundreds of companies strong — of solving problems, standing behind our products, and adding value to the men and women who produce our food.”
— Richelle Andreas, CEO of S3 Enterprises and past chair of AMC’s Board of Directors
Resilient supply chains, access to export markets key to recovery
North American manufacturers are facing critical supply chain disruptions — including shortages and soaring prices — that threaten their ability to get cost-effective products to market and secure well-paying jobs.
Infrastructure issues prevent getting goods to new markets.
A strong infrastructure network allows our high-quality Canadian-made goods and products to move quickly across the world.
Better infrastructure is the key to long-term expansion of production, more sales and the competitive development of export markets.
Recommendations
- A Canadian parliamentary study on ‘building resilient North American supply chains’ to identify shared challenges
- Renew and expand infrastructure projects that reduce bottlenecks and other disincentives to business
- Invest in resources that will allow EDC to expand its services for exporters in emerging markets in South America, Central America and other developing regions
Fostering innovation and supporting SMEs to remain competitive
In today’s digital environment, physical product design is becoming increasingly reliant on software, networking and computerization. Many pieces of industrial equipment are required to interoperate, often as a network of digital and analog components. U.S. copyright law makes exceptions for legally modifying motorized agricultural equipment for the purpose of interoperability. Canadian copyright law does not.
“We continue to innovate every day, but we need support to keep small businesses in business,” says Jamie Pegg, General Manager of Honey Bee Manufacturing. “The lack of clarity will destroy the rural communities but will also destroy the economic base driving the economy.
Removing this barrier to competitiveness and economic growth will allow innovators to develop more products that help Canada’s farmers do more with less and address important public policy issues such as climate change.
Fostering innovation also means reducing the tax burden on small businesses.
Recommendations
- Foster an innovative and competitive business climate by providing clarity on interoperability under the Copyright Act
- Extend the Capital Cost Allowance (CCA) deduction on manufacturing equipment to include equipment that will come into use after 2023 and expanding the CCA to include a full, immediate deduction for technology investments by manufacturers.
Innovating and investing in green transformation
The agricultural sector is taking significant steps to meet the objective of producing more with less while at the same time reducing pollution. For example, innovative members such as Triple Green Products are using biomass — a clean, renewable energy — to fuel operations and support environmentally friendly composting. The current carbon tax is a barrier to business growth for hundreds of SMEs.
Recommendation
- Provide more incentives for businesses to make energy-efficiency upgrades to their innovative production capabilities.
Strengthening the ag manufacturing workforce
There is an urgent need to attract and retain talent in the agricultural equipment manufacturing sector to help grow small and medium-sized businesses. There are serious labour shortages.
Approximately 80 per cent of our members intend to grow their workforce this year, but it’s not clear if they will be able to secure enough workers.
Recommendations
- Expand the Step Up to the Plate initiative to include agricultural manufacturers
- Prioritize the work of the recently established agricultural sector skills development table
- Fast-track immigration applications that help address labour shortages in the sector.
Submitted by Donna Boyd, President
Agricultural Manufacturers of Canada
August 5, 2021