Agricultural Clean Technology Program - Adoption Stream: 2. Eligibility

2. Eligibility

Check if you meet the criteria to apply.

Eligibility checklist

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

  • Examples of for-profit organizations
    • Businesses and/or corporations;
    • Individuals or sole-proprietorships;
    • Co-operatives or partnerships; and
    • Indigenous groups

Ineligible applicants

Ineligible applicants include:

  • financial institutions
  • academia including universities, colleges and researchers
  • Crown corporations
  • federal government departments and agencies
  • foreign governments
  • not-for-profits

Program priorities and eligible activities

The Adoption Stream will support the adoption of clean technology by Canadian farmers and processors that reduce GHG, fertilizer and/or methane emissions and respond to environmental sustainability.

The Adoption Stream will provide non-repayable contributions for the purchase and installation of commercially available technology or technology upgrades that show promise to generate measurable emission reductions in line with the Government of Canada targets. Projects that can show higher GHG, fertilizer and methane emission reductions will be prioritized.

The program will further prioritize projects through 3 priority areas:

  • Green energy and energy efficiency improvements that enable better management of energy intensive agricultural processes, including but not limited to the purchase and installation of:
    • energy-efficient, low-emissions equipment (for example, commercial grain dryers) where an efficiency gain can be demonstrated compared to the technology being replaced
    • technologies to power farms with clean energy (for example, fuel switching, such as conversion from coal or diesel)
    • energy-efficient heating systems for functional on-farm structures like barns that show emissions reductions over technology being replaced
    • energy efficient heat pumps
    • solar or geo-thermal systems panels and solar-powered technology, including for ventilation, farm equipment, sensors, etc.
  • Precision agriculture, that contribute to more precise, and therefore reduced input use, including but not limited to the purchase and installation of:
    • nutrient management technologies that optimize fertilizer application (that is, rate and placement) and other inputs including variable rate application technologies and GPS auto-steer guidance systems
    • technologies and systems to collect and analyze data that enable reduced fertilizer use, including soil sensors, yield monitors, remote imagery and related geographic information systems technologies
    • methane reduction technologies that optimize livestock digestion if commercially available, for example, novel feed processing and precision feed technology
  • Bioeconomy solutions that use agricultural waste and by-products to generate energy or create bio-products, including but not limited to:
    • Technologies and equipment to support improved manure management and processing waste into bioenergy products and other useful outputs, including:
      • Anaerobic digesters for processing agricultural waste into bioenergy
      • Bio-product/biomass boiler heating of farm operations/greenhouses
    • implementing solutions that use agri-based products, such as bioplastics
  • other priorities and activities that support the objective of the Adoption Stream

Examples of eligible activities under the Adoption Stream include, but are not limited to, on-farm and agri-food sector investments as described above.

Note: Projects, activities and budgets can span over more than one fiscal year, however all projects must be completed by March 31, 2026.

Eligible costs

The program may allow for eligible costs to be incurred from the date of the submission of a complete application.

Costs incurred and work undertaken prior to an application being deemed complete are ineligible under the program. Any costs incurred prior to the signing of a contribution agreement will be incurred solely at your risk without any obligation of payment by the program.

Payments for eligible project costs will only be made once a contribution agreement is signed and after recipients submit project-related financial and performance reports.

Eligible costs under the program are the incremental, relevant, reasonable and essential expenses required to carry out the eligible activities to which they relate as specifically set out in the contribution agreement.

Eligible costs won't necessarily include all or be limited to the following:

  • Capital assets
    • capital assets are tangible assets that are purchased, constructed, developed or otherwise acquired, and are required for the execution of the project
  • Salaries and benefits
    • salaries and benefits towards installation only as directly related to completing the project activities
  • Contracted services
    • professional or specialized services for which a contract is entered into, such as consultant/expert services required for implementation of a new technology.
  • Travel
    • project travel directly related to the installation of technologies and equipment supported by the Adoption Stream based on a per diem rate that includes accommodations, meals, incidentals and transportation (air or ground). Travel is limited to economy rates.
  • Other direct project costs
    • other project-related costs, such as translation, permits, the rental, lease of equipment or machinery, goods and services and all related shipping and transportation costs, including freight, required to carry out the project, and materials/consumables needed to undertake the project.

Ineligible costs

Ineligible costs include, but are not necessarily limited to:

  • administrative costs or costs of project management and administrative staff salaries for individuals engaged in work necessary to develop and complete an application form, to manage activities outlined in the work plan, or to fulfill reporting requirements. Includes use of office accommodations, equipment, materials, etc.
  • labour costs, other than as part of installation costs, including wage subsidies
  • capital items not specifically required for the execution of the project
  • costs for activities that are deemed to be part of normal business practice for any recipient
  • costs related to marketing activities and business promotion
  • land purchases
  • travel, not directly related to the installation of equipment
  • hospitality
  • in-kind contributions
  • goodwill
  • legal fees
  • refundable portion of the Goods and Services Tax/Harmonized Sales Tax (GST/HST), value-added taxes, or other items for which a refund or rebate is received
  • costs to prepare the contribution agreement or related schedules; and
    • any portion of any cost that, in AAFC's opinion, exceeds the fair market value for that cost 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

You must provide project-related financial, progress, and performance reports, or other reports, requested at AAFC's discretion. The reports will track progress to advance agricultural clean technologies against mutually agreed performance measures and deliverables, such as the:

  • reduction of GHG, fertilizer and/or methane emissions
  • number of clean technologies adopted by the agriculture and agri-food sector

The frequency of these reports will be determined based on the risk level of the recipient and the project. Requirements for performance indicators and reports will be detailed in the contribution agreement.

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