How much funding can be received?

Funds up to 95% of admissible expenses, capped at $500000 per project.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Canadian Agricultural Loans Act program?

Canadian Agricultural Loans Act program is funded by Agriculture and Agri-Food Canada (AAFC), Government of Canada

What are Canadian Agricultural Loans Act program's eligibility criterias?

Eligible applicants include farmers and agricultural co-operatives. Farmers must utilize loans for purposes such as establishing, improving, or developing farms. Agricultural co-operatives can access loans for processing, distributing, or marketing farm products.

Canadian Agricultural Loans Act program

Last Update: January 24, 2025

Canada

Loan guarantee for farmers

Canadian Agricultural Loans Act program at a glance

Eligible Funding

Max. $500,000
Up to 95% of project cost

Timeline

Continuous Intakes

Financing Type

Loans and Capital investments

Eligible Industries

Agriculture, forestry, fishing and hunting

Grant Providers

Agriculture and Agri-Food Canada (AAFC)
Government of Canada

Status

Open

Overview of the Canadian Agricultural Loans Act program program

Get a loan of up to $500,000 for the purchase of land and the construction or improvement of buildings or $350,000 for all other loan purposes, including consolidation/refinancing

Financing terms and conditions

The Canadian Agricultural Loans Act program offers a loan guarantee framework designed to support the financial needs of farmers and agricultural cooperatives sustainably. The funding modalities are structured to maximize financial access while providing security to lenders.

The federal government guarantees repayment of 95% of a net loss on an eligible loan issued to the lender.
The maximum aggregate loan limit for any one farm operation is up to $500,000.
Specific loan limits include $500,000 for land purchases and building constructions/improvements, and $350,000 for other purposes, including refinancing.
Agricultural co-operatives may access loans up to a $3 million maximum, subject to Ministerial approval.
Loans must be issued within 60 days from the purchase date if a purchase has already been completed.
Loan registration and associated fees are managed through the CALA Online Loan Registration System, integrating into the lenders’ standard procedures.

Eligible projects & activities

The Canadian Agricultural Loans Act (CALA) Program facilitates projects that focus on advancing farm operations and agricultural cooperative activities through financial support. The eligible projects aim to enhance infrastructure, support purchasing needs, and enable strategic expansion.

Purchase of land for agricultural purposes.
Construction or improvement of farm buildings.
Acquisition of machinery and implements for farm operations.
Expansion or renewal of existing farm operations.
Processing, distribution, and marketing projects by agricultural cooperatives.
Consolidation or refinancing of existing farm-related debts.

Examples of admissible projects:

$ 150,000

Marketing campaign for organic farm products

$ 350,000

Refinancing of existing debt for stable expansion

$ 300,000

Establishment of a new farm specializing in heirloom grains

$ 200,000

Development of distribution network for locally grown produce

$ 500,000

Purchase of land and construction of a greenhouse for organic vegetables

$ 300,000

Renovation and expansion of dairy processing facilities

Eligibility criteria of the Canadian Agricultural Loans Act program program

The eligibility criteria for accessing a loan under the CALA program are related to the applicant's profile and intended use of the funds.

The applicant must be a farmer or an agricultural co-operative.
The loans can be used by farmers to establish, improve, and develop farms.
Agricultural co-operatives can use the loans to process, distribute, or market the products of farming.
Loan purposes must fall within eligible categories: land purchase, building construction or improvement, or other specified purposes, including consolidation/refinancing.
The loan must fall within the maximum limit of $500,000 for farm operations or $3 million for agricultural co-operatives, with specific caps on loan purposes.

Who is eligible?

The Canadian Agricultural Loans Act (CALA) Program seeks to support farmers and agricultural co-operatives in Canada. Eligible applicants must be involved in farm operations or agricultural cooperative activities.

Farmers looking to establish, improve, or develop their farm operations.
Agricultural co-operatives involved in processing, distributing, or marketing farming products.
Co-operatives requiring the Minister's approval for loans exceeding standard limits.

Who is not eligible

There are specific types of companies that are not eligible for this grant.

Companies involved in non-agricultural activities
Companies not engaged in farming or agricultural co-operatives
Companies exceeding the maximum aggregate loan limits specified

Eligible expenses

The Canadian Agricultural Loans Act (CALA) Program supports activities that enhance the growth and modernization of farm operations and agricultural co-operatives across Canada. These projects can involve purchasing land, improving infrastructure, or enhancing the operational capabilities of farms and co-operatives.

Establishment of new farm operations or agricultural businesses.
Improvement and development of existing farms, including building construction and enhancements.
Acquisition of farmland to expand farm operations.
Purchase of machinery and equipment necessary for farming activities.
Processing, distribution, or marketing initiatives by agricultural co-operatives.

Eligibility criteria of the Canadian Agricultural Loans Act program program

The Canadian Agricultural Loans Act (CALA) Program does have evaluation and selection criteria. The criteria include:

Applicant's eligibility as a farmer or agricultural co-operative
The proposed use of the loan and its alignment with program objectives
The financial viability and sustainability of the project or operation
Ability to repay the loan
Compliance with program rules and regulations

How to apply to the Canadian Agricultural Loans Act program program

Identify Eligible Lender

Research and find a financial institution that offers CALA loans.
Contact lenders such as banks, credit unions, or caisses populaires to confirm they are participating in the CALA program.

Prepare Loan Application

Gather necessary documentation to support your loan request, such as business plans, financial statements, and any other relevant materials.
Determine the specific loan amount and purpose within the outlined CALA program limits.

Submit Loan Application

Contact the chosen lender to discuss your loan requirements and ensure they can issue a CALA loan for your needs.
Submit your completed loan application form and supporting documents to the selected lender.

Loan Registration

Once the loan is issued, lenders will use the CALA Online Loan Registration System to register the loan.
Pay any applicable registration fees required by the lender.

Await Approval and Disbursement

The lender reviews the application for eligibility under the CALA guidelines and submits it to the program administrators for approval.
Upon approval, the lender will disburse the funds to your account.

Additional information

The Canadian Agricultural Loans Act (CALA) Program provides some important administrative details and conditions.

Lenders have 60 days from the purchase date to issue a CALA loan for purchases already made.
Lenders can use the CALA Online Loan Registration System to register loans and submit associated registration fees.
Lenders must adhere to the Canadian Agricultural Loans Act and Regulations, as well as the Lenders' Guidelines.

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