Loan
Federal
Active
Canadian Agricultural Loans Act (CALA) Program
Agriculture and Agri-Food Canada
Loan Range
Up to $500,000
Ongoing (apply through your bank)
Difficulty
Easy
Payment
Loan
Trend
declining
First-Timers
Friendly ✓
Financing share
90%
Canadian Agricultural Loans Act (CALA) Program provides Up to $500,000 per farm operation; up to $3,000,000 for agricultural co-operatives. Federal loan guarantee covering 95% of lender losses on farm loans up to $500,000 per operation ($3M for co-operatives), enabling farmers to access affordable credit through participating banks for land, buildings, equipment, livestock, and intergenerational transfers. The program covers up to 90% of eligible costs. Applications are accepted on an ongoing basis.
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Eligibility & Details
What this program funds and who can apply
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Program Description
Federal loan guarantee covering 95% of lender losses on farm loans up to $500,000 per operation ($3M for co-operatives), enabling farmers to access affordable credit through participating banks for land, buildings, equipment, livestock, and intergenerational transfers. Part of a federal farm loan guarantee lineage dating to 1945; the program has operated in its current CALA form since 2009.
Eligibility Requirements
- Must be a farmer (individual, partnership, or corporation) or agricultural co-operative (50%+ farmer membership)
- Eligible purposes: land purchase, building construction/repair, equipment, livestock, fencing, drainage, farm consolidation, intergenerational transfers, cannabis production, vertical farming
- Ineligible: improving family dwelling, purchasing quotas, operating loans
- Apply through a participating bank or credit union
- Within the $500,000 aggregate limit: up to $500,000 is for land purchase and building construction or improvement, and up to $350,000 for all other purposes combined (equipment, livestock, fencing, drainage, consolidation/refinancing, and share purchases for intergenerational transfers)
- Share purchases for intergenerational farm transfers fall under the $350,000 sub-cap, and at least 90% of the fair market value of the corporation, partnership or co-operative's property must be farming property
- Farms operating on a First Nations reserve generally cannot use CALA: section 89(1) of the Indian Act prevents on-reserve property from being used as security for a loan (per AAFC's own program evaluation)
- Retroactivity is tightly bounded: a purchase already made must be within 60 days of the loan's first disbursement, while further disbursements for purchases completed up to 365 days after the first disbursement stay eligible
Provinces
Industries
Business Stage
Quick Assessment
Difficulty
Easy
Competition
Low
First-Timer
Friendly
Funding Details
- Amount
- Up to $500,000 per farm operation; up to $3,000,000 for agricultural co-operatives
- Type
- Loan
- Level
- Federal
- Financing share
- Up to 90% of eligible costs
- Deadline
- Ongoing (apply through your bank)
Program Scorecard
Competition, effort, and approval at a glance
Competition
Low
Deadline
Ongoing
Approval
Entitlement
Accessibility
--/5
Competition
--/5
Approval Rate
--%
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How to qualify
Insider tips, common pitfalls, and what successful applicants look like
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Insider TipApply through your bank, not the government — CALA is a loan guarantee that helps you get approved for bank financing you might otherwise be declined for.
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Success Profile
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Evaluation Criteria
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The pitfalls, the checklist and the reviewer notes are in the Playbook below. See what it includes ↓
What's in this Playbook
Everything you need to secure CALA
Not a marketing summary. The actual checklist, intel, and stack strategy reviewers look for.
- 4-document checklist with what each reviewer is actually checking
- Your Application Game Plan — the print-ready PDF the preview below describes
- 4-step application timeline with prep hours per step
- Insider tip from program officers on what separates winners
- 2-program stacking strategy to combine with compatible funding
- Success profile + evaluation criteria — exactly what lenders look for
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Application Playbook
Step-by-step process, required documents, and expenses
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4 steps
4 docs
Application Steps
1
Contact your bank Approach a participating bank or credit union about a farm loan.
Required Documents 4
✓ Bank loan application
✓ Farm business plan
Eligible Expenses 17
Ineligible Expenses 11
Deadline Notes
Ineligible Organizations
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
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2 partners
Compatible Programs
Combined Funding Potential
See your total funding potential
Clawback Risk
Not-applicable Risk
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How CALA Compares
Side-by-side with similar programs
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| Program | Amount | Difficulty | Payment | Deadline |
|---|---|---|---|---|
| Canadian Agricultural Loans Act (CALA... | Up to $500,000 | Easy | Loan | Ongoing (apply through... |
| Farm Credit Canada (FCC) Financing | Varies | Easy | Loan | Ongoing |
| AgriInvest Program | up to $10,000 | Easy | Advance Payment | Annual — 2025 program... |
| CanExport SMEs | Up to $50,000 | Moderate | Mixed (Advance + Reimb.) | Between intakes — the... |
| Export Development Canada (EDC) Finan... | Varies | Easy | Equity | Ongoing |
Related Programs
Other programs you might be eligible for
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Frequently Asked Questions
Quick answers to the questions founders most often ask about CALA
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Can sole proprietors apply for CALA loans?
Yes, sole proprietors qualify as 'farmers' under CALA. The program covers individuals, partnerships, and corporations — no incorporation required for basic eligibility.
What's the realistic loan amount for a first-time farm buyer?
A beginning farmer (fewer than 6 years farming) can borrow up to 90% of the lesser of the appraised value and the purchase price; an existing farmer up to 80%. So plan on a 10% or 20% down payment — farmland or chattel equity, or a trade-in, can stand in for cash. The $500,000 ceiling counts all your existing CALA loans, and within it only $350,000 can go to anything other than land or buildings.
Do I need to pay a registration fee upfront?
The 0.85% registration fee is paid by your lender to Agriculture and Agri-Food Canada when the loan is registered, and it can be added to the loan rather than paid at closing. Your lender may also charge its own administration fee, but it is capped: the lesser of 0.25% and $250 on loans under $250,000, or 0.1% on loans of $250,000 or more. Anything charged above that cap must be refunded to you.
Why do banks reject CALA applications?
Banks reject when the operation isn't creditworthy (e.g., poor credit history) or the purpose is ineligible (e.g., family dwelling improvements). The guarantee doesn't override bank underwriting.
Can I stack CALA with other farm loans?
Yes — CALA guarantees reduce the bank's risk on this specific loan, so it stacks with Farm Credit Canada and AgriInvest without affecting the $500K ceiling.
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Full Playbook: CALA
4 steps · 4 docs · reviewer insights