The agricultural sector is entering an “age of disruption” (Deloitte, 2015). Advances in technology, like robotics and artificial intelligence (AI), are reshaping farm work and rural development (RBC, 2019; The Economist, 2016). Agricultural technology (AgTech) adoption is viewed as critical in solving global challenges such as feeding a growing world population, responding to the impacts of climate change, reducing the agricultural industry’s environmental footprint, as well as addressing concerns related to food security, safety, and traceability. Supply chain issues (particularly stemming from the COVID-19 pandemic), rising input costs, and labour shortages are also driving AgTech adoption on farms (Agriculture and Agri-Food Canada, 2024). However, little is known about how AgTech adoption will affect the future of farm work and rural development.
Our multi-year project – funded by the Agricultural Research Institute of Ontario (ARIO) and Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) – examined the impacts of AgTech adoption on the future of work and opportunities for rural development in Ontario (Canada). We undertook a comprehensive review of the academic and policy literature, created a novel dataset of 247 Canadian agricultural technology organizations, and conducted 52 interviews with agricultural industry and policy experts, AgTech companies, and other stakeholders. Our analysis resulted in:
- a knowledge synthesis report;
- a series of case studies on robotic milking systems, controlled environment agricultural systems, data management platforms, and field crop agricultural robotics;
- a snapshot of the Canadian agricultural technology landscape; and
- a summary report examining the drivers, barriers and responses to the adoption of Agtech in Ontario.
What technologies are being adopted in Ontario’s agricultural sector?
Farmers in Ontario adopt a wide range of technologies. These include devices or equipment connected over WiFi or Bluetooth that collect and transmit data; remote sensing tools that monitor soil, crops, livestock, or climate; automated or semi-automated robotic equipment that perform tasks such as weeding, seeding, pruning, harvesting, or milking; and AI and machine learning tools that enhance farmer decision-making.
Farmers adopt these disruptive technologies to address labor shortages alongside a range of other economic and business concerns. However, we discovered that farmers face barriers to Agtech adoption, including high upfront costs, skepticism, risks and uncertainties, and challenges related to adapting and customizing technologies for farm use.
What does this mean for the future of farm work and rural development?
Our research revealed that AgTech adoption is changing farm work. For example, there is a growing requirement for technical skills, including programming, data analytics, coding, and other skills related to the use and maintenance of specialized equipment and software. There was also consensus that AgTech adoption was leading to new employment opportunities requiring different skills. In other words, farm work is being reimagined and upskilled to include technology-oriented skills and capabilities alongside traditional farming roles and knowledge.
The introduction of AgTech has also yielded new business development opportunities. Due to the costs associated with newer, sophisticated, and tech-laden machinery, some farmers have shifted to leasing farm equipment. This has led to a cadre of firms that operate using new business models, such as robots-as-service, whereby farmers pay for robots only as needed. New services have also emerged, especially related to maintaining equipment, such as robotic milking systems. Finally, Ontario-based firms have entered new markets, especially since AgTech adoption is more common elsewhere.
Through our research, we also identified challenges and opportunities for rural development. First, the introduction of digital technologies can lead to remote farm work, resulting in fewer local jobs and less local spending in rural communities. However, digital technologies may also make farm work more attractive to younger generations, reversing out-migration in rural areas and reinvigorating the agricultural industry. Second, our interviewees highlighted the importance of infrastructure, including energy, high-quality and stable broadband, and current and accessible radar and satellite imagery, suggesting opportunities for investment. Third, our interviewees commented on the need for industry-specific policies and regulations that account for rural and/or agricultural contexts. For example, regulations related to the use of autonomous vehicles are often designed without considering their use in agricultural settings. Finally, there are opportunities related to skills upgrading. New degree and micro-credential programs at local colleges and universities could link local post-secondary capacity to local agricultural industry needs.
What can rural regions do?
Through our research, we identified a range of responses led by government, post-secondary institutions, and the private sector. In our report, we highlight 11 initiatives that respond to the opportunities and challenges associated with AgTech adoption:
- The AgriInnovate Program
- Bioenterprise
- Homegrown Innovation Challenge
- Canadian Food Innovation Network
- Smart Farms Network
- Careers in Ag
- The Ag Robotics Working Group
- Ontario Agri-Food Innovation Alliance
- Vineland Research & Innovation Center
- Greenhouse Technician Program
- Palette Skills
One noteworthy example is the AgRobotics Working Group, a membership-driven association focused on advancing the introduction of agriculture and food robotics and automation systems with the goal of improving farm productivity and the quality of food. Founding members of the AgRobotics Working Group include Haggerty AgRobotics (an Ontario-based firm), OMAFRA, and the Western Fair Association. With over 165 members, the group supports technology testing and pilot projects and facilitates interactions through regular meetings between working group members. Other initiatives focus on skills development, education and training, awareness, and technology readiness.
Overall, agriculture continues to be an important global industry where technology plays a significant role. Our interviewees anticipated a growing role for robotics and automation. Others highlighted a growing emphasis on AI/computer vision paired with robotics, cloud computing, the Internet of Things (IoT), and the use of AI-enhanced satellite imagery analysis, machine learning, and predictive analysis. Interviewees also discussed how labor and sustainability considerations are becoming more important due to changing consumer preferences and a shifting regulatory environment. Rural regions should plan for the greater use of disruptive technologies or risk missing future opportunities.
Authors
Dr. Heather Hall is an Associate Professor and the Academic Director of the Master of Economic Development and Innovation (MEDI) program in the School of Environment, Enterprise, and Development at the University of Waterloo. She grew up in Northern Ontario and has a professional and personal interest in researching issues that are important to rural and Northern communities, including innovation and economic development policy, planning, and practice; the impacts of new technologies on the future of work; and the community impacts of mobile work and large-scale industrial projects. Heather is a member of the Canadian Rural Revitalization Foundation and the Research Advisory Board Chair for the Northern Policy Institute. She is also the co-author of Planning Canadian Regions, 2nd Edition.
Dr. Tara Vinodrai is a Professor at the Institute for Management and Innovation at the University of Toronto, where she also directs the Master of Urban Innovation program. She holds a graduate appointment to the Department of Geography and Planning. She is a Faculty Associate of the Innovation Policy Lab at the Munk School of Global Affairs and Public Policy. Her research focuses on the dynamics of innovation, economic development, labor markets, and technological change in cities. Tara’s most recent work explores the relationships between housing affordability and economic development; clusters, innovation, and entrepreneurial ecosystems; mechanisms for achieving inclusive innovation and economic development; and the impact, adoption, and use of disruptive technologies in emerging and traditional sectors. Her research and publications have won awards from the Canadian Institute of Planners, the American Planning Association, the Association of American Geographers, the Association of Collegiate Schools of Planning, and the Academy of Management. She serves on the editorial boards of Local Economy and the Canadian Journal of Regional Science. Tara has provided advice to both large cities and smaller communities and all levels of government related to innovation, economic development, and regional competitiveness.
McKenzie Huneke is a PhD candidate in Sustainability Management at the School of Environment, Enterprise, and Development at the University of Waterloo. He researches the place-based role and impacts of emerging technologies that support sustainability transitions within agriculture and local food systems. Through this work, he explores topics related to responsible innovation, inclusive design, and rural development. McKenzie is an Environmental Defense Fund 2024 Climate Corp Fellow with a Master of Science in Human Centered Design and Engineering from the University of Washington and a Bachelor of Arts in Interdisciplinary Studies from the University of California, Berkeley.
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