Canadian Agricultural Loans Act program: Step 2. Who is eligible

Step 2. Who is eligible

You can apply if you are one of the following:

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

Beginning or start up farmers may need to provide the lender with a business plan and an income tax form showing no farm income and/or expense for at least one year in the last six years.

Agricultural co-operatives may need to provide a current income tax return showing farm income and/or expense from 50% + 1 of its members or a notarized attestation as to its membership.

A farm operation must meet the definition of farmer and farming as defined in the Canadian Agricultural Loans Act.

Farmer: may be 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


  • 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, fibre, wood from woodlots, and fodder crops
  • the production or raising of any other prescribed thing or animal

Eligible purposes

The following are eligible purposes under the Act.

Real property purposes:

  • Purchase of land
  • Construction, repair or alteration of, or additions to, any building or structure on a farm
  • Purchase, movement to and installing on a farm of complete or partially complete structures and, where necessary, the completion of the installed structures

Other loan purposes:

  • Purchase, installation, alteration, major overhaul, or major repair to/of:
    • tools, implements, apparatus and machines of any kind not usually affixed to real or immovable property
    • machinery and apparatus for the generation or distribution of electricity, whether or not affixed to real or immovable property
  • Purchase of breeding livestock which will provide a long-term improvement to a farm operation including:
    • horses and other equines
    • cattle, sheep, goats and other ruminants
    • swine, poultry, bees and fur-bearing animals
    • any other prescribed animal
  • Erection or construction of fencing or works for drainage
  • Clearing, breaking, irrigating and reclaiming of land
  • Conservation of soil, prevention of soil erosion by the planting of trees and shelter belts
  • Repair or overhaul of fencing where the cost is $2,000 or more
  • Purchase and the planting of trees for syrup production and the purchase and planting of fruit trees, Christmas trees, and ginseng, where the cost is $2,000 or more
  • Construction of a road or driveway on a farm
  • Land transfer tax, survey, appraisal and legal costs relating to the purchase of additional land
  • Purchase of shares for inter-generational farm transfers
  • Consolidation/refinancing of loans

Ineligible purposes

The following are ineligible purposes under the Act:

  • Improvements to the family dwelling
  • Quota purchases of any kind
  • Operating loans and loans for the purchase of short term feeder livestock
  • Consolidation of a lender's ordinary loans