Eligibility

Check if you meet the criteria to apply.

Eligibility checklist

You must meet all of the following criteria to be eligible.

    • For-profit organization that is incorporated in Canada, including:
      • partnership
      • corporation
      • co-operative

    Examples may include small and medium-sized processors or distributors, logistics firms, and independent grocers.

    • Not-for-profit organization, including:
      • industry association
      • co-operative
      • local community, charitable, or voluntary organization
      • provincial / territorial / municipal governments and agencies with a commercial operating model and/or a private sector partner(s)

    Examples include producer co-operatives and regional food hubs

    • Indigenous (First Nations, Inuit, Métis)note 1 organization, including:
      • First Nations, Inuit, or Métis community or government
      • First Nations, Inuit, or Métis not-for-profit association
      • First Nations, Inuit, or Métis not-for-profit organization
      • First Nations, Inuit, or Métis for-profit organization

You need to meet all the eligibility criteria to qualify for the program.

Ineligible applicants include:

  • financial institutions
  • academic and educational institutions
  • foreign governments
  • foreign organizations

Eligible activities

Activities must be related to expanding and modernizing the existing network of food hubs and distribution systems to improve aggregation, processing, storage, and distribution options for producers and independent retailers.

Eligible activities relate to the establishment or expansion of a food hub, including:

  • purchasing and/or upgrading equipment to collect, aggregate, store, analyze (quality control), process, pack, sell, distribute, and/or transport food
  • purchasing materials and supplies to support infrastructure projects (for example, costs related to the installation of funded equipment)
  • purchasing and/or upgrading digital infrastructure, including supply chain management, e-commerce, and point-of-sale (POS) platforms
  • feasibility studies and supply chain mapping that includes operational improvements that integrate independent and regional distribution networks
  • construction, expansion, building retrofit and/or modernization of facilities
  • other activities associated with the collection, storage, aggregation, processing, and delivery of food from local producers to markets (stores, restaurants, institutions, and consumers), such as food safety and traceability improvements, product grading and sorting, packing and labelling, producer onboarding and coordination, and market development activities

Indigenous applicants may also be eligible for the following additional activities:

Capacity building and development
  • Including Indigenous-led market research, capacity building and market development
Risk and assurance
  • Activities focused on Indigenous approaches to developing and maintaining risk management and assurance systems, including:
    • traditional ecological knowledge initiatives
    • safe, sustainable resource management projects that integrate and revitalize traditional practices
Traditional knowledge and knowledge sharing
  • Activities to educate and increase awareness of Indigenous agriculture and food systems traditions, practices, and knowledge
  • Activities intended to revitalize and share traditional agricultural knowledge and increase community agricultural involvement and capacity to grow, forage, harvest, and process traditional, local and healthy foods and medicines
  • Indigenous developed and focused skills training initiatives relating to country foods, medicines, and plant knowledge

Ineligible activities

Applicants whose primary line of business is not operating a food hub must propose a project that expands and modernizes the existing network of food hubs and their distribution systems. The following activities would not be eligible as standalone projects:

  • construction or equipment purchases to increase a food processor’s production capacity
  • construction or equipment purchases to increase a retailer’s capacity
  • purchasing food

Eligible costs

In the first year of the program, (2026-27), costs may be eligible from the date of announcement of the Food-Link Fund, June 11, 2026. In subsequent years, costs will be eligible from the date you submit a full application (as confirmed by the program).

Costs incurred before the cost eligibility date and after the project completion date (as established by the program) will not be reimbursed. Those costs will not be considered part of your cost-share.

Costs incurred after the application is deemed complete, but prior to the signing of a contribution agreement by both parties, will be incurred solely at the applicant's risk without any obligation of reimbursement by the program.

Eligible costs are project expenses that fall within the set program cost categories and respect all program limitations.

To be considered eligible, all costs must:

  • be included in the project application form budget
  • be related to the activities included in the work plan
  • be reasonable, necessary, and essential to achieving project objectives
  • fall within the work plan activities timeframe

Eligible costs include but aren't limited to the following:

  • capital assets
  • contracted services
  • salaries and benefits
  • administration (limited to 10% of total eligible costs)
  • other direct costs for project-related deliverables

Indigenous applicants may also be eligible for support for the following additional costs:

  • As customary, costs for Indigenous Peoples-related honoraria (for example, Indigenous Elders' guidance and counselling and mentor wages under youth projects)
  • Inclusion of the treatment of Indigenous Elders and Knowledge Keepers as being on par with professional standards of accreditation demonstrating the required level of expertise (for example, doctor, lawyer, or engineer)
  • Indigenous-specific expenditures related to cultural activities (for example, Indigenous gifting, ceremonial feasts, etc.)
  • Additional costs associated with travel or accommodation in northern and remote regions may be reimbursed
    • A northern community is any community in the Northwest Territories, Nunavut, and the Yukon as well as the northern part of seven provinces (British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, and Newfoundland and Labrador), including all of Inuit Nunangat
    • A remote community is defined as one with no or little access to the services of the closest community with more than 1,000 residents and/or one that is without year-round road access
    • Exceptions can also be made (with a rationale) for a higher administrative cost of 15%, as required, for Indigenous recipients due to higher costs in northern and remote regions

For more information and details on cost categories, eligible costs, limitations and instructions, refer to Eligible costs (Complete the application and apply).

Ineligible costs

Costs that are not eligible for funding include, but are not limited to:

  • labour costs, other than the internal salary and benefits directly tied to the development and execution of the project
  • capital items not specifically required for the execution of the project
  • costs related to activities that are deemed to be part of normal business practice
  • travelnote 2
  • hospitalitynote 2
  • goodwill
  • legal fees
  • contingency fees
  • refundable portion of the Goods and Services Tax/Harmonized Sales Tax (GST/HST), value-added taxes, or other recoverable amounts
  • entertainment, gifts, and charitable donationsnote 2
  • costs to prepare the application package, contribution agreement, or related program documents
  • any portion of any cost that, in AAFC's opinion, exceeds the fair market value for that item
  • any cost, such as amortization, that would not result in a direct, out-of-pocket expense for the recipient
  • costs being reimbursed under an existing federal, provincial, or territorial program
  • any other expenditure not specifically listed as eligible or otherwise approved as eligible

Expected results

Your application must show how project activities support the specific outcomes and outputs listed below:

  • Increase the availability of food distribution infrastructure (that is, the physical and digital networks, storage hubs, and transport systems that move food from farms to retailers and communities)
  • Enhance the use of food hubs by small and medium-sized agri-food businesses and independent retailers
  • Strengthen supply chains