Farm fuel and rural utility programs

• 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

• Producer must be actively and directly farming, controlling farming assets and day-to-day management decisions.
• Applicant must have gross annual farm revenue of at least $10,000, or $5,000–$9,999 where CPP/OAS are the only other significant income sources.
• Remote Area Heating Allowance applicants must have their primary residence outside the franchise boundaries of a natural gas distributor.
• Rural Electric Grant applicants must be actively and directly farming and using the electrical service in conjunction with their farming operation.
• Rural Gas Program grants are available to participating rural gas distributors for system expansion and updating.

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

• Step 1: Alberta Farm Fuel Benefit registration
  • Download and complete the AFFB fuel tax exemption application form.
  • If the farming operation is not entirely in Alberta, complete Schedule A for operations outside Alberta.
  • Submit the signed application by mail, fax or email to the AFFB Program office.
  • Receive an AFFB registration number if approved, authorizing purchase of marked fuel at the exempt rate.
• Step 2: Remote Area Heating Allowance application
  • Complete and sign the RAHA application form.
  • Attach original or clearly printed copies of invoices or delivery tickets for eligible heating oil and/or propane.
  • Ensure invoices include purchaser details, delivery date, fuel amount, unit cost and total paid excluding GST and federal carbon tax.
  • Submit the application and supporting invoices by mail, email or fax to the Rural Utilities office.
• Step 3: Direct deposit for RAHA (optional)
  • Complete the direct deposit application form if requesting electronic payment.
  • Mail the completed direct deposit form to the Rural Utilities section.
• Step 4: Rural Electric Grant Program application
  • Obtain the Rural Electric Grant Program application from the Alberta Federation of Rural Electrification Associations website.
  • Complete applicant and service details and declare that the service is used in conjunction with the farming operation.
  • Have the REA or power company complete their section, including cost breakdown, sketch and area map.
  • Submit the completed application and required attachments to AFREA by mail, fax or email.
• Step 5: Rural Gas Program grants for distributors
  • Eligible rural gas distributors work through the Alberta Federation of Gas Co-ops to access Rural Gas Program grants for system expansion and updating, following the federation’s procedures.

• 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.