RDAR — On-Farm Climate Action Fund (OFCAF)

This grant provides financial support for producers implementing new Beneficial Management Practices (BMPs) aimed at reducing greenhouse gas emissions and promoting sustainability on farms. It ensures producers in Alberta can access necessary financial resources for project execution without reimbursement for pre-existing practices or other funded sources.

• Funding is offered only for BMPs that are new to the farm or field.
• Producers are required to pay 100% of the costs upfront; all payments are considered taxable income.
• Funding cannot be received for BMPs already in use by the farmer.
• Costs covered by the grant include resources to support BMP implementation and design recommendations.
• Financial reimbursement applies only to projects funded through OFCAF, excluding costs funded from other sources.

Eligibility for this grant is determined by specific requirements related to the applicant's profile and proposed activities.

• The applicant must be an active producer, including proprietorship, corporation, or registered partnership, that can demonstrate a minimum of $25,000 of gross farm income in Alberta.
• The applicant must work with a Professional Agrologist (PAg) or Certified Crop Advisor (CCA) to develop a BMP Action Plan based on agronomic advice and detailing cost differences from usual practices.
• The applicant must be headquartered in Alberta and apply funds only to lands in Alberta.
• The project must have a minimum eligible project cost of $2,500.
• The applicant must pay 100% of the costs upfront, as all payments will be considered taxable income.
• Landlords whose only interest is in the land but are not raising crops or livestock are ineligible.
• Funding must be for the new adoption of BMPs; farmers cannot receive funding for a BMP already in use or a project funded from other sources.

Who is eligible?

Who is not eligible

This grant excludes certain companies and industries based on their main activities and land interest. The restrictions ensure that funds are provided to active producers genuinely looking to implement new sustainable practices on their farms.

• Landlords whose only interest is in the land and are not actively raising crops or livestock.
• Entities where the Beneficial Management Practices (BMP) are already in use.
• Projects where costs are funded from sources other than OFCAF.

Eligible expenses

Eligible projects for this grant focus on the adoption of on-farm Beneficial Management Practices (BMPs) to improve environmental sustainability and efficiency. These projects aim to lower greenhouse gas emissions, increase soil health, and enhance biodiversity.

• Improving nitrogen management through agronomic services, soil sampling, and analysis.
• Increasing the adoption of cover cropping by providing resources for seed and custom seeding costs.
• Expanding the adoption of rotational grazing by developing grazing management plans, and installing necessary infrastructure like cross fencing and water systems.
• Supporting additional activities like outreach, education, and training related to BMP adoption.

Eligible geographic areas

This grant is specifically available to producers operating and headquartered in Alberta, Canada. Eligibility is focused on supporting agricultural activities in this region.

• Producers headquartered in Alberta, Canada.
• Activities and lands located within the province of Alberta.

The OFCAF program uses an application and approval process, where expenses must be pre-approved and documented for reimbursement. Payments for approved projects are considered taxable income and have specific submission deadlines.

• Applications from 2023 not reviewed due to lack of funds must be re-submitted.
• Projects planned after April 1, 2024, must be pre-approved in writing.
• Invoices must include Legal Land Descriptions (LLDs) and proof of payment.
• Applications close once funding is fully allocated.
• The same BMP cannot be funded on the same field in 2024 if it was funded in previous years.
• Maximum reimbursement is 85% of eligible costs, up to $75,000 over the three-year period from April 1, 2022 to March 31, 2025.
• Landlords without a direct interest in raising crops or livestock are ineligible.
• Reimbursements are made by March 31, 2025.