- Step 1. What this program offers
- Step 2. Eligibility
- Step 3. Before you apply
- Step 4. How to apply
- Lender process
- Lender guidelines
- Contact information
Step 1. What this program offers
Intake period: Open
The Canadian Agricultural Loans Act (CALA) Program is a loan guarantee program designed to increase the availability of loans to farmers and agricultural co-operatives. Farmers can use an agriculture loan to establish, improve, and develop farms, while agricultural co-operatives may also access loans to process, distribute, or market the products of farming.
Program objectives
The program aims to:
- help lenders incorporate CALA Program loans into their normal lending practice
- provide a government guarantee on eligible loans to farmers and agricultural co-operatives
- support farmers in accessing agricultural credit to grow their operations
Funding
Under this farm financing program, the federal government guarantees, to the lender, repayment of 95% of a net loss on an eligible loan issued.
The maximum aggregate loan limit for any one farm operation is $500,000.
The maximum aggregate loan limit for agricultural co-operatives is $3 million, with approval from the Minister of Agriculture and Agri-Food.
Loans are limited to a maximum of:
- $500,000 for the purchase of land and the construction or improvement of buildings
- $350,000 for all other loan purposes, including consolidation/refinancing
Example of a CALA Program loan
If you get a CALA Program loan for $300,000 for a tractor, you can still access up to $200,000 for land purchase or building repair. Alternatively, you could borrow $50,000 for another implement and $150,000 for land purchase or building repair.