Agri-Innovation Program is a No Interest Business Loan up to $5M

Businesses in the agriculture sector can receive an additional source of cash through the Agri-Innovation Program. Offered through Agriculture and Agri-Food Canada, the Agri-Innovation Program provides agricultural businesses across Canada with 0% interest repayable funding towards a variety of expenditures that will improve the company’s productivity or promote innovation. This program is similar to the FedDev Prosperity Initiative, but with more of a focus on agricultural projects.

Agri-Innovation Canadian Government Loan Details

The program is offered under two streams, depending on how far along your project is. The intention of the Agri-Innovation Program is to accelerate innovation, commercialization, and adoption of new products, technologies, processes, and services within the agricultural industry. The end result will be an improved productivity level and competitiveness within the Canadian agriculture sector, helping Canadian agricultural firms capture new domestic and global opportunities. You must finish your spend by March 31, 2013 and repayment normally begins 1 year following the completion of the project, to be repaid within 10 years of the program end date.

Stream A: Knowledge Creation and Transfer

This channel of funding is split into two categories: (1) Innovation Strategy Development and (2) Implementation of Applied Science and Technology Development Projects.

Component 1: Innovation Strategy Development

This initial component is intended to aid value chain developments, including:

• Investigations and consultations from a research perspective of market opportunities
• Strategic research business planning and development to foster leadership.

Component 2: Implementation of Applied Science and Technology Development Projects

Through this component, successful candidates will receive funding to help with research support, foster collaboration between the private sector, AAFC, and/or academic laboratories in order to accelerate the development of new products, practices, processes, or technologies. The intention is for projects to transform ideas into new knowledge and technology.

Stream B: Commercialization

The commercialization stream will facilitate the adoption and commercialization of agri-based technologies and innovations in the agricultural, agri-food, and agri-based sectors. Eligible projects include:

• Commercializing or adopting innovative agricultural, agri-food or agri-based products, technologies, processes and services;
• Establishing, expanding, or modernizing a facility to commercialize or adopt an innovative agricultural, agri-food or agri-based product, technology, process or service for domestic and/or international markets;
• Implementing marketing opportunities related to the commercialization or adoption of an innovative product, technology, process or service.
• Goods and services and all related shipping and transportation costs
• Labour including wages/salaries and benefits, specific per diem fees
• Rental, lease of facilities, equipment or machinery
• Materials/consumables needed to undertake the project
• Costs of work related to compliance with the CEAA
• Production of materials required to fulfill obligations under the agreement,
• Building purchase, renovation, site improvement, leasehold improvements
• Machinery, equipment, and software purchase and installation costs
• Start-up costs, including interest capitalized during construction, insurance
• Marketing costs, hiring of marketing expertise and other related activities

Eligible Expenses

• Goods and services and all related shipping and transportation costs
• Labour including wages/salaries and benefits, specific per diem fees
• Rental, lease of facilities, equipment or machinery
• Materials/consumables needed to undertake the project
• Costs of work related to compliance with the CEAA
• Production of materials required to fulfill obligations under the agreement,
• Building purchase, renovation, site improvement, leasehold improvements
• Machinery, equipment, and software purchase and installation costs
• Start-up costs, including interest capitalized during construction, insurance
• Marketing costs, hiring of marketing expertise and other related activities

Agri-Innovation Payment Procedure

Each claim must be supported by details of the costs being claimed and certified by an authorized official of the recipient. Successful applicants will be required to provide periodic financial, work plan progress and performance reports as required under the terms and conditions of the CA with AAFC.

First Steps to Canadian Government Funding

Interested companies should evaluate the eligibility of their project through the Assessment Criteria Page and contact AAFC’s Environmental Services Unit by sending an e-mail to environmentalservice@agr.gc.ca. Additionally, please contact Mentor Works for helpful resources and support throughout the application process.