Tile Loan Program — Ontario Agricultural Drainage
Eligibility & Details
What this program funds and who can apply
Program Description
Low-interest provincial loan program for Ontario agricultural landowners to install underground tile drainage systems. Administered jointly by local municipalities and OMAFA, the program lends up to 75% of tile drainage installation costs (capped at $50,000 per farmer per year) at a provincially-set fixed interest rate, repaid over 10 years. The program is uniquely executed: most loans are processed through the local municipality, which inspects the work, collects annual repayments, and forwards funds to the province. Tile drainage is one of the most significant yield-improving investments available to Ontario crop farmers.
Eligibility Requirements
- Must be the registered owner of agricultural property in Ontario
- Agricultural land must have a drainage problem requiring tile drainage
- Soil must be responsive to drainage (clay or loam soils — not sand or gravel)
- Property must have a legal discharge outlet for drainage water
- Only property owners may apply — tenants/renters are not eligible (even on rented farmland)
- Loan covers installation of new tile drainage systems on agricultural land
Quick Assessment
Funding Details
- Amount
- Up to 75% of tile drainage installation costs, maximum $50,000 per farmer per year
- Type
- Loan
- Level
- Provincial
- Co-Funding
- Up to 75% of eligible costs
- Deadline
- Applications typically accepted May through March annually
Program Scorecard
Competition, effort, and approval at a glance
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How to Win
Insider tips, common pitfalls, and what successful applicants look like
Insider TipThis is one of the most cost-effective ways to finance tile drainage — the interest rate is set provincially and fixed for the 10-year term, historically lower than commercial lending rates. Apply to your local municipality first (most Ontario municipalities administer the program). For farms in unorganized territories, apply directly to OMAFA. You can access up to $50,000 per year — if you have multiple fields needing drainage, plan the largest/most impactful project first. Early repayment is permitted without penalty. The municipality inspects the completed work before approving the final loan, so use licensed drainage contractors familiar with the Tile Drainage Act requirements.
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Success Profile
Ontario crop farmers (corn, soybeans, wheat) with clay or loam soil fields that currently suffer from waterlogging, spring flooding delays, or yield drag from poor drainage. Landowners making a long-term investment in farm productivity who own (not rent) the land.
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Evaluation Criteria
Application assessed for: (1) eligible agricultural land ownership; (2) soil suitability for tile drainage; (3) existence of legal discharge outlet; (4) valid property title (no legal impediments); (5) contractor quotes within reasonable cost parameters. Municipal inspector verifies completed work before final loan disbursement.
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Application Playbook
Step-by-step process, required documents, and expenses
Application Steps
Required Documents 7
Eligible Expenses 5
- Installation of subsurface tile drainage systems (perforated pipes, drainage tubing)
- Associated excavation and backfill labour
- Materials (drainage tile, fittings, outlets)
- Drainage contractor fees
- Engineering/design costs for drainage plans
Ineligible Expenses 5
- Surface drainage work (ditches, surface grading)
- Equipment purchases (tractors, farm machinery)
- Buildings or structures
- Land acquisition costs
- Drainage on non-agricultural land
Intake Periods
Annual cycle: applications accepted approximately May through March. Installation typically occurs June through November. Check with your local municipality for specific intake timing.
Deadline Notes
The program operates on an annual cycle. Most municipalities accept applications from May through March. Check with your local municipality for their specific intake schedule. Work should be planned for the summer/fall installation season.
Open Application Portal →Ineligible Organizations
- Tenants and land renters (only registered property owners qualify)
- Non-agricultural property owners
- Corporate entities where individual farmers cannot demonstrate direct agricultural land ownership
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Funding Stack Strategy
Compatible programs, clawback risk, and combined funding potential
Stacking partner data not yet available.
Clawback Risk
Medium RiskThe loan is registered against the property title. Upon property sale, the outstanding loan balance must be repaid from proceeds. Annual repayment obligations are legally enforceable against the property. Failure to repay may result in municipal tax lien.
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How Tile Loan Program — Ontario Agricultural D... Compares
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