Horticulture Diversification Program

• Funding covers 50% of eligible expenses, up to $40,000 per recipient, per year.
• 75% of eligible expenses for contracting professional agronomic services, to a maximum of $5,000.
• The maximum funding per recipient over the duration of the Sustainable CAP is $75,000.

• The applicant must be a commercial horticulture producer of food for local and domestic markets.
• The applicant must report at least $20,000 in Canada Revenue Agency gross sales of eligible horticulture crops per year; new producers not yet meeting this threshold must enroll in the Future Farmer Program with a relevant business plan or submit an approved production and marketing plan for horticulture food production.
• Mi’kmaq First Nations and other Indigenous groups engaged in farming activities are eligible.
• Other applicants may be eligible at the discretion of the Horticulture Diversification Program Review Committee.
• Projects must contribute to diversifying and increasing the domestic supply of horticulture products not already produced in excess of local consumption.

Who is eligible?

• Commercial horticulture producers of food for local and domestic markets
• Mi’kmaq First Nations and other Indigenous groups conducting farming activities
• Other organizations approved by the Horticulture Diversification Program Review Committee

Who is not eligible

• Companies with projects supporting horticulture commodities that are already produced in excess of local consumption in Prince Edward Island.
• Businesses focused on perennial crop production (these are redirected to a separate program).
• Companies seeking funding for used greenhouse structures or replacement of greenhouse consumables (e.g., plastic, row covers, drip tape).
• Businesses applying for ineligible expenses such as tractors, oil furnace heating systems, equipment storage facilities, off-site storage rentals, consumer-grade freezers/refrigerators, construction of new buildings, or general renovations unrelated to climate-controlled crop storage.
• Applicants seeking funding for agronomic support unrelated to greenhouse production.

Eligible expenses

• Purchase and installation of new commercial-grade structures such as cold frames, row tunnels, high tunnels, hoop houses, greenhouses, and propagation houses.
• Acquisition and setup of new or expanded Controlled Environment Agriculture (CEA) production systems, including hydroponic and indoor mushroom cultivation systems.
• Professional installation costs for eligible equipment and structures.
• Purchase and installation of irrigation and fertigation equipment, such as pumps, filtration systems, fertilizer injectors, water storage tanks, piping, valves, sprinklers, drip tape, and controllers.
• Acquisition and setup of heating and ventilation systems, horticultural lighting, greenhouse sensors, monitors, and system controls for automatic temperature and humidity regulation.
• Purchase of racking, trays, row cover applicators, and greenhouse curtain systems to enhance production space and efficiency.
• Procurement of automation equipment and tools to improve field and greenhouse production efficiency.
• Purchase of equipment used to wash, clean, grade, and/or pack horticulture food products.
• Acquisition and installation of on-farm cooling, refrigeration, freezing, and storage technology for fruit and vegetables, including walk-in coolers/freezers (minimum 100 ft²) and associated infrastructure such as drainage, plumbing, ventilation, electrical, and insulation.
• Upgrades to ventilation and temperature control systems for existing storage areas, and installation of sensors, monitors, and controllers to optimize energy efficiency and product quality.
• Pre-storage chilling or cooling expenses to optimize crop preservation.
• Costs associated with contracting specialized agronomic expertise to improve greenhouse operations.

Eligible geographic areas

• Prince Edward Island

• Quality and clarity of the project description and justifications provided in the application form, business plan, or questionnaire.
• Expected impact of the project on the applicant's operation and the horticulture sector.
• Soundness and detail of the proposed project budget.
• Applicant's relevant experience related to the proposed project.

• Projects assessed to have benefits beyond Prince Edward Island, impacting multiple Atlantic provinces, may qualify for regional funding.
• Initiatives that contribute to increasing public trust in the agri-food sector may be eligible for additional funding.
• Sustainable CAP programs are developed with consideration for under-represented groups, such as Indigenous Peoples, women, youth, and persons with disabilities.
• An ongoing evaluation process is in place to monitor the program's objectives and results.