Q&A on Managing Intergenerational Growth in Canadian Agribusiness

Écrit par Leah Tolton KC, FEA

Canadian agricultural family enterprises are living legacies that anchor our local economies. From household names to community-driven farms, these businesses have deep roots in the land and the hearts of their communities.

My Bennett Jones colleague, Lorelei Graham, recently joined me as a guest on the Beyond Succession podcast. Lorelei practises intellectual property law with a significant focus on clients in the food and agribusiness sector. She joined me to discuss how family-owned agribusinesses grow, transition, innovate, build a lasting legacy and give back across Canada.

Here are some highlights from our discussion:

What is unique about family enterprises in the Canadian agriculture industry?

The most impressive thing is the impact these organizations have on our Canadian economy. They are resilient and adaptable businesses. It is amazing to see how they range from small local farms to very large corporations like McCain and Weston, and that they often span multiple generations. The long-standing ties to the land and to Canada as a whole make agriculture different from other sectors.

What challenges do family-owned agricultural businesses face when transitioning from one generation to the next?

Succession planning requires active engagement in the business and the industry. In farming, this might mean crop management, livestock care or food production. All of this is hard work, and farming communities can be isolated. The multi-generational attachment to the land also plays an emotional role in decision-making. Financial considerations can be complex in large families and adopting new ideas or ways of doing business can be difficult during succession.

What are some of the notable upsides of succession in agribusiness?

Legacy and brand building can be powerful forces. They can inspire, motivate and become a major source of pride. We have many great examples of this across Canada. Innovation is also critical and can lead to remarkable breakthroughs. Most recently, we have seen artificial intelligence making its way to the farm, the business and the grocery store.

How do family-owned businesses contribute to innovation in agriculture?

I see innovation in three buckets.

First, what do we mean by innovation? It might include protecting confidential information and data, sustainable farming practices, energy-efficient operations or using drones and other new technologies.

Second, it is important to understand how innovation affects the business. It is a powerful tool that has helped large Canadian companies scale internationally with food products designed for global markets.

Third, there is the impact of innovation on the enterprise and its reputation. Agribusinesses are central to their communities, and spreading innovation, education and knowledge is a major contribution.

You mentioned the importance of legacy. How is it connected to public image and brand reputation?

Family agribusinesses need to manage their image and reputation carefully. There is a lot at stake. They supply the food we all consume and depend on.

These businesses have a rich history and a strong connection to the country. The food industry depends on authenticity and that really resonates with consumers. Generations of family stewardship build legacy, reputation and trust.

But personal reputation can also pose risks. If there is any threat to the brand, it can also impact personal credibility. Family disputes that become public or a scandal can damage the brand, and that damage is often more severe than for other types of businesses.

How do Canadian agricultural family enterprises approach philanthropy, and what impact does it have on their brand, business and legacy?

Philanthropy takes many forms, from sponsoring local events to establishing foundations and funding research. Regardless of the approach, agricultural family enterprises are committed to supporting the well-being of Canadians.

In the long term, philanthropy helps these businesses grow. It is a way to communicate their values and what they bring to the community. It can also strengthen family bonds. Many families want to give back, and philanthropy helps teach the next generation that giving is part of the legacy they will carry forward.

The full Beyond Succession podcast episode on managing intergenerational growth in agricultural family enterprises is available here. If you would like to discuss how these businesses can continue to thrive in a rapidly changing world, please contact Leah Tolton.

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