Canadian Agricultural Loans Act program
Resources that matter
Let’s find you funding
The Canadian Agricultural Loans Act (CALA) Program is a loan guarantee program designed to increase the availability of loans to farmers and agricultural co-operatives. Farmers can use these loans to establish, improve, and develop farms, while agricultural co-operatives may also access loans to process, distribute, or market the products of farming.
Through the CALA Program, we are supporting the renewal of the agricultural sector and enabling co-operatives to better seize market opportunities.
What are the features?
Under the CALA, the federal government guarantees, to the lender, repayment of 95% of a net loss on an eligible loan issued.
The maximum aggregate loan limit for any one farm operation is $500,000.
Loans are limited to a maximum of:
- $500,000 for the purchase of land and the construction or improvement of buildings
- $350,000 for all other loan purposes, including consolidation/refinancing
The maximum aggregate loan limit for agricultural co-operatives is $3 million, with the Minister’s approval.
For example: If a farmer gets a CALA loan for $300,000 for a tractor, he can still access up to $200,000 for land purchase or building repair, or $50,000 for another implement and $150,000 for land purchase or building repair.
Our Focus
Our focus is the financial health of all of our clients. We ensure that we provide them with exceptional customer service through the entire funding process.
ARE YOU ELIGIBLE FOR CALA?
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
Farming:
- 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
Why Apply with us
Fortuo believes in each one of the applications that we support. Our detailed pre-qualification process leads to a higher rate of approval for each government funding program.
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
- 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
Our Focus
Our focus is the financial health of all of our clients. We ensure that we provide them with exceptional customer service through the entire funding process.
integrity. professionalism. results
What Our Dedicated Clients Are Saying
"Donec id elit non mi porta gravida at eget Duis mollis, est non commodo luctus, nisi erat porttitor ligula, eget lacinia odio sem nec elit. Donec ullamcorper nulla tellusper nulla tellus ac cursus commodo tortor mauris condimentum nibh"
Joel Marshall
"Donec id elit non mi porta gravida at eget Duis mollis, est non commodo luctus, nisi erat porttitor ligula, eget lacinia odio sem nec elit. Donec ullamcorper nulla tellusper nulla tellus ac cursus commodo tortor mauris condimentum nibh"
Jane Doe
"Donec id elit non mi porta gravida at eget Duis mollis, est non commodo luctus, nisi erat porttitor ligula, eget lacinia odio sem nec elit. Donec ullamcorper nulla tellusper nulla tellus ac cursus commodo tortor mauris condimentum nibh"
Jane Doe
Resources that matter
Let's find you funding
Get the intelligent, responsible, and reliable financing you need through Fortuo Financial. Our funding experts use a simple, common sense approach to close your deal as efficiently and effectively as possible. Let us add value to your investment decision-making process.