Perennia — On-Farm Climate Action Fund (OFCAF)

• Cost-sharing model: 85% of eligible project costs are funded by the program; the applicant covers 15%.
• Maximum funding per farm or co-operative is based on gross farming income, ranging from $10,000 to $100,000 over the six-year program (2022–2028).
• Non-profit agricultural associations and community pastures applying for the first time may receive up to $75,000; previously funded recipients may receive up to $100,000.
• Nitrogen management and cover cropping equipment purchases are capped at $30,000 per producer or 85% of purchase cost, whichever is lower; cover crop equipment funded at up to 50% of purchase cost.
• Project-specific funding: e.g., development of 3-year nutrient management plans funded at 75% of actual costs up to $4,000 per recipient (one time); seeding costs funded at $100/acre, paid out at 85%.

• The applicant must be a farm, co-operative, not-for-profit agricultural association, regional or community pasture, other agricultural producer group (in existence prior to the program), or a Mi’kmaq conducting farming activities in Mi’kmaw communities, or represent an underrepresented group.
• The applicant must be actively engaged in farming activities.
• The applicant must be capable of entering into a legally binding agreement and be at least 19 years of age.
• The applicant must be headquartered in Nova Scotia and apply funds to lands located in Nova Scotia.
• The project must involve the new adoption, expansion, or significant improvement of beneficial management practices (BMPs) such as nitrogen management, cover cropping, or rotational grazing that address soil health and greenhouse gas emissions.

Who is eligible?

• Farms
• Co-operatives
• Not-for-profit agricultural associations
• Regional or community pastures
• Other agricultural producer groups
• Mi’kmaq conducting farming activities in Mi’kmaw communities
• Underrepresented groups involved in agriculture

Who is not eligible

• Companies not headquartered in Nova Scotia.
• Organizations not actively engaged in farming activities or agricultural production.
• Businesses applying funds to lands outside Nova Scotia.
• Applicants unable to pay 100% of project costs up front.
• For-profit companies outside of the farming/agricultural sector.

Eligible expenses

• Difference in cost between urea and eligible polymer coated urea (PCU) fertilizers.
• Difference in cost between eligible stabilized fertilizers and urea (must include both urease and nitrification inhibitors).
• Fees for plans, assessments, design work, and consultancy costs for technical or agronomic support.
• Soil testing and soil mapping costs (only when combined with another eligible practice and capped at $20,000).
• Offset costs for adopting synthetic fertilizer substitutes such as manure, compost, or digestates.
• Costs for split application of fertilizer with a reduced rate based on increased crop use efficiency.
• Seed and planting costs for increasing legumes in crop rotation (flat rate basis).
• Purchase or upgrade of fertilizer application equipment for banding, side-dressing, or injection (cap applies).
• Spreading costs and equipment for improved manure application, including hoses or shallow incorporation devices (restrictions apply for equipment type).
• Professional service fees from agronomists, agrologists, or Certified Crop Advisers related to cover cropping or rotational grazing.
• Seed costs or per-acre payments for cover cropping with regionally-appropriate seed varieties.
• Purchase or upgrade of direct planting equipment for cover crops (certain types only, capped per applicant).
• Infrastructure costs for rotational grazing (e.g., cross fencing, virtual fencing, wildlife-friendly fencing, temporary fencing, waterers, and remote watering systems powered by renewable energy), including third-party installation labor.
• Seeding costs for improving pasture composition with eligible low methane species.
• Costs for developing grazing management plans, technical assessments, or engineered designs.

Eligible geographic areas

• Nova Scotia

• Eligibility of the applicant, activities, costs, and project timelines.
• Alignment of the project with the program’s objectives and priorities.
• Contribution of the project to the adoption of beneficial management practices that store carbon and reduce greenhouse gas emissions.
• Capability of the applicant to successfully complete the project.

• All recipients are required to complete an educational activity related to each adopted best management practice (BMP).
• Recipients must retain all original invoices and proofs of payment for seven years after project completion for potential federal review.
• OFCAF contributions are considered taxable income and will be reported with an AGR-1 tax slip.
• Monitoring or site visits may be conducted to ensure compliance with approved project activities.