Climate change is no longer a future concern for Canada’s agriculture sector—it is a present and accelerating risk. Rising temperatures, shifting precipitation patterns, and more frequent extreme weather events are already reshaping how and where food is produced across the country.
Canada continues to warm at roughly twice the global rate, with northern and Prairie regions warming even faster. Since 1948, Canada’s average temperature has increased by 1.9°C, compared with roughly 1.2°C globally, contributing to shorter winters and longer growing seasons, says Stats Canada.
Below, we’ve outlined some of the opportunities and challenges facing farmers as we see continuing changes in climate conditions.
Opportunities for ‘greener’ farming practices
As a high-latitude country, warming is more pronounced in Canada, which results in longer frost-free seasons. Alberta could benefit the most from increased summer and winter precipitation, while Saskatchewan and Manitoba would experience little change or small increases. Warmer temperatures could also mean lower energy costs for farmers, as well as benefit livestock production in the form of lower feed requirements and increased survival rates of the young.
Climate change could improve soil quality by enhancing carbon sequestration through “carbon agriculture”, which includes no-till farming (where you grow things year-to-year without disturbing the soil), cover crops (which help spur microbial activity in the soil), and a grazing technique popularized by biologist Allan Savory called “holistic management”. Changes to land-use through annual crop production, perennial crops and grazing lands, could all contribute to reducing greenhouse gas emissions.
Imminent challenges ahead
Extreme weather events such as floods and droughts are difficult for agricultural systems to adapt to. Insured losses from severe weather exceeded $2.4 billion in 2025, making it the 10th costliest year on record in Canada, says IBC. For agriculture, these events can result in reduce crop yields during extreme drought or flooding years, delays in planting and harvesting, and increased soil erosion and nutrient loss.
Warmer temperatures also mean warmer summers, which could be problematic for livestock producers who have to deal with heat-wave deaths. Reduced milk production and reproduction are other impacts in the dairy industry, as well as reduced weight gain amongst beef cattle. Higher levels of atmospheric carbon dioxide (CO2) and an increase in the use of pesticides and pathogens in livestock and crops can lead to increased weed growth. The manufacturing, transportation and application of pesticides could contribute to higher energy costs for farmers.
Despite successful adaptation in some regions, climate risk continues to grow. In 2025, wheat and canola production reached new national highs—but results varied sharply by geography, with Eastern Canada experiencing heat‑related declines. Projections also show canola yields in the Prairies could decline 20–37 per cent under moderate warming scenarios without further adaptation.
While there’s a lot of uncertainty surrounding the future of Canada’s agriculture industry, one thing is clear: we are likely to see more extreme weather events, soil erosion and higher average temperatures. Farmers must look at environmentally friendly farming practices to adapt to the effects of climate change and stay in business.
Protect yourself and your business with the right insurance
Even if you take all the necessary precautions to safeguard your business things can still go wrong, potentially resulting in a loss. At Northbridge, your business insurance policy can include access to our Risk Services Team. Our Risk Services experts can travel to your worksite to advise on risk management measures for your business. Visit our Risk Services page or our Farmer’s Insurance page to learn more about how we can help your business stay one step ahead of climate risks.