Canada.

YEAR TWOIN REVIEW.

About Farm of the Future Canada: TheSummary.
When McCain Foods embarked
on a journey to become a moresustainable company, from thefarm to the plate, a keystone
commitment was to ensure thatevery potato harvested for a McCain
french fry, hashbrown, Tasti Tater orother specialty product was grown
on a farm that uses regenerative
agricultural practices.

flagship of McCain Foods’ Farms of the Future
project is situated on 500 acres near thecompany’s hometown of Florenceville, NB.
The Farm includes 355 acres of cultivated landowned by McCain, and an additional 145 acres
rented on a long-term agreement. The property
also includes a 140-acre forested lot.

With that commitment came apromise to our farmer partners
that we would support them every
step of the way. We promised todevelop three Farms of the Future
in different growing regions aroundthe world, where we could test different practices
and approaches to regenerative agriculture to findwhat works best.
We have now completed two growing seasonsand harvests at Farm of the Future Canada, ourflagship Farm of the Future near our hometown ofFlorenceville, NB. Our confidence in regenerative
agriculture as a pathway to mitigate theclimate impact of growing potatoes continues
to strengthen.
At Farm of the Future Canada, we are fulfilling ourpromise to re-imagine the way we grow a potato.

“The way our climate is rapidly changing,
we have to do something. It’s going to be
an ongoing battle; climate change isn’t
going away. We need to be prepared for
future generations and make sure that
we can still produce a good crop and not
spend too much money on damage control.
Floods, heavy winds and hot days; we need
to be prepared to combat these things.”
Andrew Stephenson
Fourth-generation farmer from a family thathas been working with McCain since thecompany was founded 66 years ago.

2Year 2Highlights.
The second season at Farm of the Future Canada
featured three varieties of potatoes on 150 acres,
193 acres of grains, 168 acres of cover crops and
41 acres of pastureland for grazing.
To better benchmark the performance of regenerative
agricultural practices at Farm of the Future Canada
against more conventional farming methods, a nonscientific comparison was established with Valley Farms.
On two fields at Farm of the Future Canada, we used thesame seed source and coordinated planting and harvest
with a fumigated field at Valley Farms. It was interesting
to note that despite using a lesser amount of fertilizer
and pesticides at Farm of the Future Canada, there was
not a significant difference in yield or quality.
This is just one example of the considerable
advancements we are making at Farm of the Future
Canada towards more sustainable agriculture.

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Year 2 Highlights.

Ensure Farm Resilience

Armour Soil with PlantsThe yield and quality of the potato crops
at Farm of the Future Canada werestrong in 2022; colour, specific gravity
and size were in line with local averages.

Multi-species cover crops were planted
over 142 acres at Farm of the Future
Canada, with minimal application offertilizer or pesticides. Out of 11 months(an estimated 290 days), Farm of theFuture Canada soil surface was covered
with green vegetation for 181 days,
which is ideal.

However, this is still a learning process.
While the regenerative agricultural
practices we employed didn’t hinder
quality or yield, there are takeaways
that will require re-assessing on-sitepractices to ensure consistency.

Reduce Agro-ChemicalInputs
We have reduced applications offertilizers and pesticides across Farmof the Future Canada — most notably
a 13 per cent reduction in the use ofnitrogen — enabled by GPS systems on
all farm machinery and implemented
soil scanning technology to allow forvariable application.

Enhance Crop andEcosystem Biodiversity
We are quantifying the biodiversity on
Farm of the Future Canada with DNA
barcoding — which objectively maps soilspecies, provides deeper insights into soil
biodiversity health to support management
decisions, promotes understanding ofspecies-related risks and opportunities,
and uncovers how the soil ecosystem ischanging with different management
practices and time. We also have introduced
pollinator strips, micro ecosystems that
attract and encourage pollinating insects.

Minimize Soil Disturbance

Optimize Water Use

Fall bedding has proven to beparticularly effective at Farm of theFuture Canada, improving planting
logistics, removing the need forspring tillage and the demands onlabour and equipment during thecritical spring season.

An irrigation pond was dug and a drip
irrigation system was purchased for
Farm of the Future Canada in 2022.
It will be deployed and operational in2023 to better manage water use.

Controlled Traffic Farming was also
expanded, with GPS systems now
equipped on all tractors used at Farmof the Future Canada.

4Regenerative Agriculture Framework.
The McCain Foods Regenerative Agriculture Framework is the roadmap to a more sustainable farm. The Framework
defines McCain’s core principles of regenerative agriculture and maps out how it is measuring progress against
seven indicators, while providing flexibility for farmers to decide what will work best on their farms.

After two seasons in operation, Farm of the Future
Canada has reached the Expert level in three of theseven indicators on the scorecard.

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2
3

Armoured Soils, Preferably with Living Plants
Farm of the Future Canada was covered with living plants
or residue for 290 days in 2022, above the Expert thresholdof 270 days.

Enhanced Farm and Ecosystem Biodiversity
More than a quarter of the Farm of the Future Canada land
(28 per cent) is dedicated to natural habitat, well above theFramework standard of 8 per cent for the Expert level.

Enhanced Crop Biodiversity
The number of cover crops grown at Farm of the Future
Canada, depending on the season, ranged from six to 12,
well above the Expert threshold of eight crop species.

In the remaining four indicators, Farm of the Future Canada isat the Beginner level. In its second year of operation, a strong
foundation has been laid to continue moving Farm of theFuture Canada up the Framework.

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Reduced Toxicity of Pesticides
Farm of the Future Canada has achieved a 516 Environmental
Impact Quotient (EIQ), which is only 16 points away fromreaching the Master level.

Minimize Soil DisturbanceTillage was reduced by one event on a potato crop andconservation tillage was adopted in rotational crops. The
intensity of tillage was reduced by switching to a chisel plow,
and no tillage was used for non-potato crops.

Reduce Agro-Chemical Impact and Optimize Water Use
All inputs in 2022 were applied based on DSS or expert advice
from a recognized crop advisor. GPS is now being used on all
farm tractors.

Increase Soil Organic Matter
Soil health assessments have been completed and will be reassessed annually, including soil biodiversity assessments. Itmay take a few years for changes implemented in the first twoyears of Farm of the Future Canada to register an increase inmeasurement.

5Regenerative Agriculture Framework.

MOVING FORWARD
We are pleased with our progress so far against the Regenerative Agriculture Framework but are cognizant that thisis a multi-year process and there remain areas to improve.

We are confident that ourEIQ values will continueto fall. Further reductionof the use of Mancozeb
in 2023 should lower ourEIQ score into the Masterlevel for the Agro-ChemicalInputs indicator.

Increased use of precision
agriculture technology,
such as variable rate
fertilizer application andSee-and-Spray, will further
reduce the impact of agrochemical inputs on Farm ofthe Future Canada.

In the coming year, further
reduction of synthetic
fertilizers in favour oforganic sources andincreased use of covercrops and green manures,will increase the organic
matter on the Farm andfurther reduce the carbon
footprint of the operation.

See the McCain Foods’ Regenerative
Agriculture Framework here.

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