Canadian Agricultural Loans Act program
grant_single|update January 24, 2025
Canada
Loan guarantee for farmers
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Agriculture and Agri-Food Canada (AAFC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
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
grant_single_labels|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.
grant_single_labels|projects
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.
grant_single|admissibleProjectsExample
$ 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
grant_single_labels|admissibility
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.
grant_eligibility_criteria|who_can_apply
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.
grant_eligibility_criteria|who_cannot_apply
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
grant_eligibility_criteria|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.
grant_single_labels|criteria
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
grant_single_labels|apply
- Step 1: 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.
- Step 2: 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.
- Step 3: 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.
- Step 4: 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.
- Step 5: 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.
grant_single_labels|otherInfo
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.
Apply to this program
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