Open
Farm fuel and rural utility programs
Supports fuel tax relief and rural energy infrastructure access
Last Update: April 13, 2026
Funding available
$ 5,250
Timeline
- Open Date : April 13, 2026
Location
Alberta, Canada
Overview
This program provides tax exemptions and rebates on farm fuel and rural heating, plus grants to reduce rural electrification and gas infrastructure costs, with some supports covering up to 25% of eligible fuel purchases. It targets actively farming producers and rural residents without natural gas access, as well as rural utilities and distributors expanding essential energy services.
/100
Opportunity Score
Moderate potential, but conditions must align.
At a glance
Funding available
Financing goals
- No objectives are currently available
Eligible Funding
- Maximum amount : 5,250 $
- Up to 25% of project cost
Timeline
- Open Date : April 13, 2026
Eligible candidates
Eligible Industries
- Agriculture, forestry, fishing and hunting
- Utilities
Location
- Alberta
Legal structures
- Financial cooperative
- Public or Parapublic institution
- For-profit business
- Sole proprietorship
- Non-financial cooperative
Annual revenue
- $ 10,000 minimum revenue
Organisation size
- All organization sizes
Audience
- Rural or Northern Residents
Next steps
1
Determine your project
2
Validate your eligibility
Activities funded
- Use of marked farm fuel and eligible farm licence plates for farm machinery in agricultural production and farm vehicles transporting the farmer’s own production or supplies.
- Heating of primary residences and eligible buildings with propane or heating oil in areas without access to a natural gas distributor franchise.
- Construction or upgrading of rural electric connections and services directly supporting farming operations.
- Expansion and updating of rural natural gas distribution systems by participating rural gas utilities.
Documents Needed
- Completed Alberta Farm Fuel Benefit fuel tax exemption application form
- Schedule A form for AFFB applicants with operations outside Alberta (if applicable)
- Completed Remote Area Heating Allowance application form
- Original or clearly printed copies of invoices or delivery tickets for heating oil and/or propane for RAHA
- Rural Electric Grant Program application form with detailed cost breakdown, sketch and area map
Eligibility
Who is eligible?
- Alberta farm producers actively and directly engaged in farming operations.
- Farm corporations meeting the AFFB farming activity and revenue requirements.
- Individuals or organizations whose primary residence is outside the franchise boundaries of a natural gas distributor.
- Individual farm producers seeking rural electric service for use in conjunction with their farming operation.
- Rural natural gas distributors participating in the Rural Gas Program.
Who is not eligible
- Owners of farming assets who rent those assets to others on a cash or crop-share basis without conducting their own farming operations.
- Applicants whose primary residence becomes served by a natural gas distributor, for purposes of RAHA heating oil/propane rebates.
Eligible expenses
- Purchase of dyed gasoline and diesel, and eligible propane and aviation fuel used for farming purposes.
- Cost of heating oil and propane for primary residences outside natural gas franchise areas, up to specified annual consumption limits.
- Basic cost of constructing or connecting rural electric services used in conjunction with farming operations, net of thresholds or company investment.
- System expansion and updating costs for rural natural gas distribution infrastructure incurred by participating rural gas distributors.
Eligible geographic areas
- Province of Alberta
Additional information
- The Remote Area Heating Allowance Program is scheduled to expire on March 31, 2026, with applications accepted until March 31, 2027 for eligible fuel purchases.
- A portion of Rural Electric Grant Program applications are randomly selected each year for validation of the farming declaration.
- AFFB registration numbers can be refused, cancelled or suspended if farm fuel is used for ineligible purposes.
- Random audits may be conducted on AFFB participants to verify continued eligibility.
Contacts
Frequently Asked Questions about the Farm fuel and rural utility programs Program
Here are answers to the most common questions about the Farm fuel and rural utility programs. This section explains what the program is, how much funding is available, eligibility requirements, application deadlines, and other important details to help you determine if this grant is right for your business.
What is the Farm fuel and rural utility programs?
This program provides tax exemptions and rebates on farm fuel and rural heating, plus grants to reduce rural electrification and gas infrastructure costs, with some supports covering up to 25% of eligible fuel purchases. It targets actively farming producers and rural residents without natural gas access, as well as rural utilities and distributors expanding essential energy services.
How much funding can be received?
Farm fuel and rural utility programs Funds up to 25% of admissible expenses, capped at $5,250 per project.
Who is eligible for the Farm fuel and rural utility programs program?
To be eligible for the Farm fuel and rural utility programs program, you must:
Actively and directly farming with control over farming assets.
Minimum gross annual farm revenue of $10,000, or $5,000–$9,999 with limited other income.
Primary residence located outside a natural gas distributor’s franchise area for heating rebates.
What expenses are eligible under Farm fuel and rural utility programs?
Use of marked farm fuel and eligible farm licence plates for farm machinery in agricultural production and farm vehicles transporting the farmer’s own production or supplies.
Heating of primary residences and eligible buildings with propane or heating oil in areas without access to a natural gas distributor franchise.
Construction or upgrading of rural electric connections and services directly supporting farming operations.
Expansion and updating of rural natural gas distribution systems by participating rural gas utilities.
Who can I contact for more information about the Farm fuel and rural utility programs?
You can contact Government of Alberta by email at affb@gov.ab.ca or by phone at 780-422-9167.
Where is the Farm fuel and rural utility programs available?
The Farm fuel and rural utility programs program is available the province of Alberta.
Is the Farm fuel and rural utility programs a grant, loan, or tax credit?
Farm fuel and rural utility programs is a Grant and Funding
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