Canadian Agricultural Loans Act Program: Step 2. Eligibility

Step 2. Eligibility

Check if you meet the criteria to apply.

Eligibility checklist

You must meet all of the following criteria to be eligible for this government farm loan.

    • existing farmer
    • beginning farmer (less than 6 years of farming)
    • start-up agribusiness
    • farmer taking over the family farm
    • part-time farmer
    • agricultural co-operatives with a majority (50% + 1) farmer membership

Farmer refers to one of the following that is, or intends to be, engaged in farming in Canada:

  • an individual
  • a partnership
  • a corporation
  • a co-operative association

Farming refers to:

  • the production of field-grown crops, cultivated and uncultivated, and horticultural crops
  • the raising of livestock, poultry, and fur-bearing animals
  • the production of eggs, milk, honey, maple syrup, tobacco, fibres, wood from woodlots, and fodder crops
  • the production or raising of any other prescribed thing or animal

Business loans for small business

If you’re not a farming operation, and don’t meet the eligibility criteria above, but you operate a small business or start-up in Canada and you want a business loan, please visit the Canada Small Business Financing Program and AgPal to browse through programs, services and more.

Eligible loan purposes

Your farming purpose(s) must be eligible under the Act.

The following are examples of eligible loan purposes.

Real property purposes

  1. Purchase of land
  2. Construct, repair, alter, or add to any building or structure on a farm
  3. Purchase, transport, and install complete or partially complete structures and completion of the installed structures, where necessary

Other loan purposes

  • Purchase, installation, alteration, major overhaul, or major repair of:
    • tools, implements, apparatus, and machines
    • machinery and apparatus for the generation or distribution of electricity
  • Purchase of livestock, including:
    • horses and other equines
    • cattle, sheep, goats and other ruminants
    • swine, poultry, bees and fur-bearing animals
    • game birds, ostrich, emu and rhea
  • Build fencing or works for drainage
  • Plant trees and shelter belts to prevent soil corrosion and erosion
  • Purchase and plant fruit trees, Christmas trees, ginseng, and maple trees for maple syrup production where the cost is $2,000 or more
  • Consolidate or refinance loans under the CALA Program, including:
    • loans originally granted by the lending institution where the loans were first issued
    • loans issued by a third party, provided they were initially made for purposes eligible under the CALA Program
  • Purchase of shares for inter-generational farm transfers
  • Purchase of CALA Program registration and administration fees
  • Costs to get security on existing assets, including premiums for life and/or disability insurance
  • Cannabis production
  • Vertical farming
  • Leasehold improvements
  • Land improvements

Ineligible loan purposes

The following are examples of ineligible loan purposes.

  • Improving the family dwelling
  • Purchasing quotas of any kind
  • Operating loans

The lists above are not exhaustive. Please contact your local lender or contact the program if you have any questions about loan purpose eligibility.

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