How an agriculture society boosts farm innovation

Agricultural societies have long been part of the fabric of rural life in Ontario, but one such organization is changing how it supports agriculture.

Philanthropy, particularly support for innovation and the future of the agriculture industry, has become a core part of the Elora, Ont.-based Grand River Agricultural Society. That includes making investments into early-stage ag tech companies and entrepreneurs.

Why it matters: Canada ranks high globally in agricultural research support but lags in its ability to successfully bring agricultural innovations to market. That is partially due to lack of flexible investment to grow start-up businesses.

About three years ago, the society took a hard look at what “we wanted to be when we grow up,” says Katie Giddy, vice-president of operations. It settled on a focus of nourishing people, animals and the planet by supporting innovation, education, communications and economic growth.

“We think of innovation as not only classic new development of products and technology, but also innovative thought and thought leadership,” Giddy says. “Canada needs an (innovation) ecosystem that allows great people and talent to stay here, and when we look at the big world problems, it became clear that sustainable agriculture and the environment need innovation.”

The society operates the GrandWay Event Centre and Grand River Raceway and is home to Elements Casino Grand River as a tenant. All are revenue-generating activities in which net funds are reinvested in activities and facilities that align with the vision.

A key component is supporting ag tech companies and entrepreneurs with innovative ideas through impact investing.

For example, the society invested in Ag Capital Canada and The 51, became a sustainable innovation sponsor with Bioenterprise Canada, and partnered with the team at RH Accelerator.

“When we looked at the ecosystem, we decided people also need mentorship and support. RH Accelerator was already doing due diligence and providing mentorship, so this gave us the confidence to invest early-stage patient capital into entities focused on ag and environmental tech,” Giddy says.

One of the first recipients was IntelliCulture, which automates decision-making about spraying, equipment maintenance and task assignment on-farm. The start up has continued to flourish since receiving the society’s $100,000 investment, and attracted support from larger scale investors like Emmertech, an agriculture tech-focused venture capital fund, and 519 Growth Fund.

Most recently, the society has invested in VetSon, a virtual veterinary service launched by Colin and Glen Yates to improve access for farmers and lessen the burden on veterinarians. It has just announced an expansion of service into Yukon.

“One of the things we learned early in this process as a small investor is the companies we commit to found credibility in the fact that an organization such as ours had invested in them – and that’s not something we were originally expecting at all,” Giddy says. This was valuable in startups’ ability to attract additional investment.

The society also believes it can make an impact on a smaller scale by providing companies with what it calls “rapid response” funding to grow businesses. After supporting five companies for each of the last two years, the organization has just doubled its investment to make the program available to 10 businesses.

Additionally, it funds 12 annual scholarships at the University of Guelph for agriculture or environment-related programs. Giddy herself was an early recipient when the program first launched. It also supports various agricultural organizations like 4-H, Rural Ontario Institute, AgScape, Ontario Soil and Crop Improvement Association and others.

The organization has increased its commitment to the now three-year-old Early Career Research Award by Livestock Research Innovation Corporation, which provides research funding to University of Guelph scientists involved in cross-sectoral livestock research.

“What we see in the future are multiple opportunities to both do more of the same and look for new opportunities. We are fortunate that the funding we have provided is both meaningful and impactful,” says Giddy. “It is important for us to stay attune with what is happening in the industry to understand where we are driving next.”