June 1st, 2015
Canada has a strong presence in emerging global markets, and young farmers are playing a crucial part of the renewal of the Canadian agriculture sector. In order to provide stability, support, and ensure the success of young farmer enterprises, programs are developed to help new farmers operate their enterprises with competitive edge.
This is the Programs for New Farmers – Part Two. If you haven’t read through the programs offered in Part One, you can read them here at Program for New Farmers – Part One.
AgriInvest is a savings account that is self-managed, allowing producers to set money aside to be used to recover from small income shortfalls, or to make investments to reduce on-farm risks delivered by the federal government in all provinces except Quebec.
Based on a percentage of your Allowable Net Sales, your AgriInvest account builds as annual deposits are made while receiving matching contributions from federal, provincial, and territorial governments. AgriInvest is a cost shared between the federal, provincial, and territorial governments on a 60/40 basis.
Canadian Agricultural Loans Act Program
The Canadian Agricultural Loans Act (CALA) Program’s objective is to increase the availability of loans to farmers and agricultural co-operatives to better seize market opportunities. As a loan guarantee program, farmers can use these loans to develop, establish, and improve farms. Agricultural cooperatives may use the loans to process, distribute, or market the products of farming.
The federal government guarantees repayment of 95% of a net loss on an eligible loan issued under the CALA with the maximum loan limit of $500,000 for any one farm operation. Loans are limited to a maximum of:
- $500,000 for the purchase of land and building constructions or improvements.
- $350,000 for all other loan purposes, including consolidation/refinancing.
With the Minister’s approval, agricultural co-operatives can have a maximum aggregate loan limit of $3 million. A lender has 60 days from the purchase date to issue a CALA loan if a purchase has already been made.
Career Focus Program
The Career Focus Program is for Canadian graduates and providing funding for 80 agricultural internships that will last at least four months to a maximum of 12 months. During this period of
time, it will provide recent graduates in agriculture, agri-food science, and veterinary medicine a meaningful experience. Within Agriculture and Agri-Food Canada (AAFC), the Career Focus Program will provide a yearly funding of $864,000 to projects that hire recent Canadian graduates.
Approved projects will be eligible to receive 50% of total eligible costs, up to a maximum of $20,000 in matching funds. Applications are processed through rounds on a “first come, first served” basis depending on the amount of funds available. Do note that this program is not made available for a summer employment program.
There are many programs in place to help the agricultural industry and new farmers to establish their enterprise innovatively with competitive edge. The Canadian government recognizes and focuses on the importance of the agriculture sector to ensure a strong presence in up-and-coming markets worldwide. Get in touch with INAC Services today to find out how you can secure money to grow your future prospects.