Potato farmer Sheldon Wiebe of MacGregor, Manitoba, is adopting new sensor technology to monitor spoilage risks in his climate-controlled storage bins. By using artificial intelligence-powered sensors developed by Calgary-based Cellar Insights, Mr. Wiebe receives smartphone alerts indicating early signs of mold spores that could compromise his potato crop. This early detection capability aims to reduce losses before his potatoes are shipped to Simplot Co.’s French fry processing plant, located nearby.

The technology leverages data collected throughout the storage season to adapt to Manitoba’s variable climate, which presents distinct challenges across seasons. “We’re in such a high-risk business and margins are very tight,” Mr. Wiebe said, emphasizing the value that reliable data brings to decision-making.

Mr. Wiebe’s farm is one of two designated innovation farms managed by the Winnipeg-based Enterprise Machine Intelligence and Learning Initiative (EMILI), a non-profit organization that connects farmers with emerging agricultural technologies. EMILI helps producers test and evaluate new tools aimed at improving productivity and operational efficiency.

Aside from storage monitoring, Mr. Wiebe is also trialing an AI-powered irrigation system called Autonomous Pivot, originally developed in Israel. This system employs ground-penetrating radar to measure soil moisture levels and detect potential crop health issues such as disease or insect damage. The technology provides precise watering recommendations to prevent crop stress, a task that previously required manual weekly soil moisture tests.

The broader Canadian agricultural sector is witnessing increased interest in digital tools such as predictive weed control and smart field management systems as farmers seek to enhance productivity and compete globally. However, challenges including inconsistent rural internet connectivity, gaps in digital literacy, and uncertain returns on investment continue to hinder widespread adoption.

Investment trends reflect these challenges. Research from RBC indicates that funding for domestic agri-food companies, particularly those focusing on primary agriculture, has declined over the past decade. Deals have dropped by nearly 30%, and their cumulative value has decreased by over 30%, as some investors perceive the sector as fragmented and risky.

A 2025 report by the Canadian Agri-Food Policy Institute identified a disconnect between the excitement around new technologies and the practical realities faced by producers. Larger operations in grains, oilseeds, dairy, and controlled-environment agriculture often lead in adopting digital tools, while smaller farms are slower to integrate these innovations.

To address these barriers, EMILI and partners such as Farm Credit Canada (FCC) have launched initiatives like AIVA, a network offering farmers the opportunity to test emerging ag-tech products with reduced financial risk. EMILI’s CEO Jacqueline Keena noted that the organization’s innovation farms provide credible, field-tested insights to help farmers distinguish effective solutions from overhyped claims.

FCC’s recent report on artificial intelligence adoption in Canadian agriculture found the sector lagging behind others nationally. Mohamed Yaghi, vice-president of AgExpert and Innovation Hub at FCC, highlighted the growing importance of data: “At the end of the day, an anecdote is a data point.” FCC continues to advocate for increased capital investment to advance agricultural innovation in Canada.

Industry stakeholders acknowledge that no single technology will revolutionize farming practices but emphasize that AI tools can add valuable capabilities. For example, Mr. Wiebe pointed out how data from spoilage sensors can trace storage problems back to specific field conditions, helping “connect all the dots across the farm.”

Venture capitalists and thought leaders, including Dragons’ Den investor Arlene Dickinson, have called on Canada to intensify focus on agri-food innovation. Mr. Wiebe noted that consumers’ growing demand for food traceability enhances the value of technology that tracks crop origins and input usage.

Experts like Taylor Phillips, chief technology officer at Saskatoon-based risk-management firm Maverick Ag, advocate for improving farmers’ digital skills to enable effective use of new tools. He assists producers in consolidating fragmented farm data with artificial intelligence platforms such as Google’s Gemini ecosystem, aiming to build “clean, calibrated and accessible data” necessary for reliable predictive insights.

While agriculture’s digital transformation faces ongoing hurdles, initiatives like those involving Mr. Wiebe’s farm indicate a gradual shift toward data-driven farming practices that can improve efficiency and reduce risks in Canadian agriculture.