Too Many Eggs in the Wrong Basket
I am fascinated by the inextricably linked policies and initiatives intent on de-carbonizing our built environment, securing economic stability, and promoting sustainable communities. The work needed to fight our global climate crisis is vast, extending across sectors like transportation, energy production, biodiversity, agriculture and the built environment. I typically work with clients focusing on the built environment. Seeing so much taxpayer money directed toward a few battery plants is discouraging when we need meaningful incentives and programs to build regenerative industries linked to regenerative urban and rural communities.
This observation brings me to the central purpose of this newsletter: why is there so much investment in building EV battery plants along the Quebec-Windsor corridor while thousands of agriculturally related businesses along that same corridor could benefit from agri-innovation investment--or agri-tech to feed more resilient growth in the built environment that not only positively impact climate resiliency but also ensure economic development within affected communities.
Let's look at the recent government announcements supporting the manufacture of batteries for electric vehicles in Southern Ontario. Using $40 billion of taxpayer money to boost EV production, these subsidies are supposed to support jobs and local economies to improve the adoption of electric cars. But at what cost? What kind of jobs are being created? Where are they being created? How will they support economically resilient economies and communities near them?
I am keenly aware of the need for more sophisticated strategies for rural economic development and the future potential of smaller communities to thrive in a post-carbon global economy. This need is especially true for Prince Edward County and the Bay of Quinte region, where I live part of the week.
Shifting Gears: From Batteries to Bioregions
Ontario's recent influx of government funding towards EV battery production aims to establish the province as a North American leader. While promising job creation and environmental benefits, this focus raises concerns about its long-term impact. Critics argue that the hefty price tag could come at the expense of other crucial areas, like agriculture!
Meanwhile, the agricultural sector, responsible for 2.3% of Ontario's GDP and employing over 800,000 individuals, often feels under-resourced. Transitioning to regenerative practices, prioritizing soil health, biodiversity, and environmental well-being, offers immense potential for economic and ecological gains. However, this transformation requires financial support for research, infrastructure development, and farmer education.
Here are some key areas where government investment could cultivate a more sustainable agricultural landscape in Ontario:
1. Research & Development:
Sustainable farming practices: Fund research on regenerative practices like cover cropping, no-till farming, and integrated pest management to demonstrate their economic and environmental benefits.
Local food systems: Invest in research on strengthening local food networks, from urban agriculture initiatives to farm-to-table programs, to shorten supply chains and improve food security.
Climate-resilient crops: Support research on developing and adopting crop varieties resilient to climate change, ensuring long-term food security and farmer livelihoods.
2. Infrastructure & Technology:
Food processing facilities: Invest in regional food processing facilities to reduce food waste, create valuable products, and add value to agricultural outputs.
Renewable energy infrastructure: Support the development of on-farm renewable energy sources like solar and wind power, reducing reliance on fossil fuels and increasing farm energy independence.
Digital technologies: Invest in digital tools and platforms that connect farmers to markets, consumers, and valuable agricultural data, improving efficiency and profitability.
3. Farmer Education & Support:
Training programs: Provide accessible training programs for farmers on transitioning to regenerative practices, including soil health management, diversified cropping systems, and sustainable livestock management.
Mentorship & peer networks: Facilitate farmer-to-farmer knowledge exchange through mentorship programs and networks, fostering collaboration and accelerating the adoption of sustainable practices.
Financial assistance: Offer grants, loans, and other financial incentives to support farmers in adopting regenerative practices and overcoming initial investment hurdles.
A Holistic Approach
Investing in a regenerative agricultural future isn't just about food. It's about building resilient communities, protecting the environment, and creating a thriving rural economy. I live just outside Picton (pop. 26,000), a community facing incredible pressures to build more housing while offering better infrastructure and a more stable economy. Housing is costly here, and linking agri-tech and agricultural innovation to building a community could offer a greater diversity of housing in addition to resilient industry, cutting-edge innovation, and skilled jobs, which is essential to pursue regenerative growth over time for places like Prince Edward County and the Bay of Quinte region.
The Future We Sow
Our choices today will shape the future of Ontario's food system and rural communities. Supporting a regenerative agricultural economy is not just a responsible use of resources but an investment in our province's health, well-being, and economic prosperity for future generations. Let's shift our focus from the fleeting headlines of battery production to the enduring potential of a thriving and sustainable agricultural future.
Looking at EV battery production
Recent government deals with Northvolt, Volkswagen, and Stellantis-LGES could create over 50,000 jobs across Canada. Building these EV plants will help us achieve ambitious EV sales targets and reduce our reliance on foreign imports. EV battery production could attract talent and research, driving innovation in related fields like battery technology and recycling.
However, arguments against large-scale government investment present many concerns about the value of taxpayer money. A Quebec environmental group is seeking a court injunction against Northvolt's factory, citing potential harm to biodiversity. This level of investment could come at the expense of other crucial areas like agriculture.
Housing and Food Systems
There are always opportunities for integrating urban agriculture into housing developments, creating community gardens, rooftop farming initiatives, or vertical farming systems. These approaches can provide fresh, local food while fostering social connections and green spaces. Even if food yields are minimal--especially when built in the context of Prince Edward County--the potential to develop innovative types of housing which could be exported elsewhere is enormous. However, it takes money to incent developers to innovate with new housing models, using new technologies to support their realization.
Affordable housing near farms? What is the need for affordable housing options near farms to attract and retain the workforce needed for a thriving agricultural sector? How can governments help? And how can this revitalize rural communities and ensure equitable access to healthy food?
Vibrant Main Streets and Local Food
We already appreciate how farmers' markets and local food shops can act as hubs for the community, supporting local agriculture and creating a sense of place. Still, many of these features are seasonal at best and only symptomatic of the culture of the community. More investment and traction must support the importance of local food--and its link to urban revitalization through agritourism. Larger-scaled and more innovation-led approaches to food production are required.
Innovative concepts like community-supported agriculture (CSA) models or vertical farming integrated into buildings can foster a closer connection between food production and consumption within communities; even if yields are low, investment opportunities support a virtuous cycle that includes innovation and design refinement.
Putting too many eggs in the wrong basket
The Canadian government's $50-billion investment in EV battery production is an inefficient and risky approach to urban development. The high cost per job created through these subsidies raises doubts about the guaranteed success of the EV market, questioning the investment's long-term viability. Subsidizing EV battery production raises concerns about the potential return on investment and the opportunity costs of not adequately investing in post-carbon urban infrastructure development, housing, and other critical areas.
There may be a greater need for a carbon tax instead of subsidies, encouraging consumers to adopt greener transportation options without favouring specific technologies or industries. A carbon tax should link to policies that could effectively support agri-tech in Prince Edward County. It also represents a shift in focus from subsidizing specific projects to investing in infrastructure that supports diverse and sustainable transportation choices, including public transit, cycling infrastructure, and walkable communities. This implies that the current approach might need to be revised to address issues like urban sprawl and congestion, which require a comprehensive shift towards sustainable and multimodal transportation systems.
A lack of consideration for environmental costs relating to the mining and refining of critical minerals for batteries, questioning the overall ecological benefits of battery production should be a consideration. We are still determining what kinds of batteries or fuel will drive our cars in the decades ahead. There is some thought that hydrogen will become more prevalent, or a new battery will emerge, or electric vehicles will level off at 50% of all automobiles sold. This uncertainty is enough cause to seriously consider a more holistic approach to urban development that considers the entire lifecycle of technologies and promotes solutions that minimize environmental impact throughout the production and consumption chain.
The opportunity costs for ignoring diverse solutions
Adopting a policy favouring the EV battery industry and technology over agri-tech and investing in regenerative urban development in small communities is an indication that, at the very least, there should be increased support--or at least focus from governments and the private sector--for more sustainable and efficient investments in research and development of various clean technologies, not just EV batteries, to foster innovation and adaptability in urban development solutions.
The current government's approach to EV battery production is a risky and inefficient way to promote urban development. A shift towards a more comprehensive strategy that prioritizes carbon pricing invests in diverse and sustainable transportation infrastructure and considers the environmental impact of technology choices throughout their lifecycle is more likely to bring more prosperity to Canadians.
Additional Resources for Ontario and Federal Government Programs Supporting Agri-Food and Agricultural Innovation
The Ontario and Federal governments have introduced several programs to support agri-food and agricultural innovation. Here are some key examples:
Federal:
AgriInnovate Program: Launched in 2023, this program offers funding of up to $7 million per project for research and development activities focused on innovation in the agri-food sector, including sustainable practices, new technologies, and value-added products.
Canadian Agricultural Loans Act (CALA): This ongoing program provides subsidized loans to farmers and agri-businesses for investments in land, equipment, and other improvements that support innovation and sustainability.
Sustainable Canadian Agricultural Partnership (SCAP): Through SCAP, Ontario and the Federal government invest in several initiatives to enhance sustainability and competitiveness in the agri-food sector. A $3.5 billion five-year agreement includes:
Agri-Tech Innovation Initiative: This initiative funds farms and food processing businesses to adopt innovative technologies and equipment to improve efficiency and productivity.
Food Waste Reduction Challenge: This challenge supports projects that develop and implement solutions to reduce food waste across the supply chain.
Ontario Agri-Food Research Initiative (OAFRI): This multi-year initiative provides funding for research projects across various areas of the agri-food sector, including sustainable production, food safety, and market competitiveness.
On-Farm Climate Action Fund: This program funds farmers for implementing practices that reduce greenhouse gas emissions and improve climate resilience.
Food Processing Investment Fund: This fund offers financial assistance to food processors to expand their operations and adopt new technologies.
