Canadian agricultural businesses can access a wide range of funding to offset the cost of strategic growth, capital investments, and innovation projects. With many agri-businesses operating from coast to coast, the federal and provincial governments provide targeted grants and loans to encourage business development and diversification. As a result, companies can access thousands to millions of dollars to carry out agricultural projects that create strong, sustainable growth opportunities.
Government grants and loans for agriculture can support workforce development, technology adoption, research, innovation, and export market expansion.
Canadian farm and food processing businesses benefit from accessing many of the government funding programs available. In addition to the vast number of programs that exist, one of the biggest benefits of government funding for agricultural advancement is how flexible funding is to support a wide variety of projects.
Government Funding for Agriculture and Agri-Food
While it’s possible to access funding programs on a project-by-project basis, we recommend incorporating grants and loans as part of your overall business strategy. To do this, we recommend that all manufacturers work with us to construct a government funding plan.
Government funding plans offer a proactive approach that outlines all upcoming strategic project expenses, then matches them with funding programs to optimize funding potential.
Want to learn more about managing, financing, and building a successful agri-business in relation to building a successful funding plan? Download the free Canadian Agri-Business Growth Guide to gain access to a comprehensive research analysis of current trends, tools, and data analytics regarding Canada’s extensive agriculture industry.
Top Canadian Agriculture Funding Programs
Provided through the Government of Canada, these are some of the top grant funding programs that are available to agriculture and agri-food or beverage businesses across the country. Discover how they can help your company grow and become more innovative:
Canadian Food Innovation Network (CFIN)
CFIN offers two programs that support Canadian food and beverage businesses that are looking to innovate new products, processes, and more through research and development. The programs are the Innovation Booster stream and the Challenge stream.
- Amount: Canadian businesses may receive up to 50% of eligible expenses from $10,000 to $100,000 for the Innovation Booster stream, and up to 50% of eligible costs up to $500,000 to $2 million for the Challenge stream.
- Eligibility: Eligibility criteria vary according to stream. However, all applications must include a minimum of one Canadian business in the food industry with a maximum of 500 full-time equivalent (FTE) employees.
Supply Management Processing Investment Fund (SMPIF)
The Supply Management Processing Investment Fund (SMPIF) was created to address the impact of international trade agreements on processors in the agri-food sector. This program will provide funding to processors of supply-managed commodities so they can invest in new automated equipment and technology to improve productivity and efficiency. In addition to leveraging private investments in processing plants, the fund’s objective is to enhance product quality while lowering labour costs, addressing labour shortages, and accelerating automation adoption.
- Amount: Access up to 50% of eligible project costs to a maximum $5 million per application.
- Eligibility: Companies may be eligible for funding if they facilitate dairy processing, are poultry processors, operate hatcheries, and egg graders and processors.
Sustainable Canadian Agricultural Partnership (SCAP) – AgriInnovate
The AgriInnovate program is provided through the Sustainable Canadian Agricultural Partnership (SCAP). AgriInnovate is designed to help businesses commercialize and/or adopt innovative agri-based products, technologies, processes, or services.
- Amount: Companies accessing AgriInnovate funding may receive repayable funding of up to 50% of eligible project costs to a maximum $5 million.
- Eligibility: For-profit Canadian businesses operating in the agriculture or agri-food sector are eligible to apply.
Sustainable Canadian Agricultural Partnership (SCAP) – AgriScience
Through the AgriScience Program, the agricultural and agri-food sector and Canadians can accelerate innovation through pre-commercial science activities and research. There are three priority areas in the program: Climate Change and Environment, Economic Growth and Development, or Sector Resilience and Societal Challenges.
- Amount: Up to $5 million can be awarded to this program for a non-repayable portion of the project’s eligible costs.
- Eligibility: Applicants may be eligible if they meet the following criteria:
- For-profit organizations, including communes;
- Not-for-profit organizations, including associations, clubs, co-operatives, societies, and sector councils; and
- Indigenous individuals and organizations.
Sustainable Canadian Agricultural Partnership (SCAP)
The Sustainable Canadian Agricultural Partnership (SCAP) aims to strengthen the competitiveness, innovation, and resilience of the agriculture, agri-food and agri-based products industries. The Canadian government, provincial governments, and territorial governments signed a 5-year agreement, effective through 2028, known as the Sustainable Canadian Agricultural Partnership.
- Amount: Varies depending on province, applicant type, and project focus.
- Eligibility: Varies depending on province, applicant type, and project focus.
Federal Hiring Grants
Hiring grants are widely available across Canada to help onboard employees gaining early career experience. Funding is generally aligned to the type of candidate hired and how long they work for your company; less funding is available to hire interns while more funding is available to support recent graduates.
- Amount: Depends on candidate type. Interns/Co-op students may help businesses leverage incentives of $5,000 to $7,000 per incremental new hire. Recent graduates may help businesses leverage incentives of $12,000 to $15,000 per new hire.
- Eligibility: Canadian for-profits and non-profits with the capacity to provide meaningful work experiences. Candidates should be in (or have recently graduated from) a business or STEM education program.
Scientific Research and Experimental Development (SR&ED)
There are also research and development incentives, such as theScientific Research and Experimental Development (SR&ED) program, that provide retroactive support from the government. SR&ED offers tax credits for business-led research and development projects.
SR&ED applicants claim over $3 billion in tax incentives annually with over 20,000 claimants per year.
To learn how SR&ED may be leveraged for agriculture companies, read our article, Food Science Funding – How SR&ED Funding Works for Natural and Organic Ingredient Projects.
Top Ontario Agriculture Funding Programs
In addition to the Canadian agriculture grants and loans listed above, Ontario-based food producers and processors may qualify for provincially funded or targeted incentives such as:
Southwestern Ontario Development Fund (SWODF)
The Southwestern Ontario Development Fund (SWODF) is a business expansion funding program that incentivizes companies to invest in new facilities and equipment, as well as economic development organizations, municipalities, and consortia in investing in infrastructure or implementing strategies to advance regional priorities.
- Amount: Up to 15% of eligible project expenses to a maximum of $5 million.
- Eligibility: To qualify for the Southwestern Ontario Development Fund, applicants must:
- Have been in operation for at least 3 years;
- Commit to creating at least 5 new jobs (or 30% increase for companies with fewer than 15 employees);
- Have 10 or more FTEs or, if in a rural community, 5 FTEs;
- Be located in, or plan to locate in, a community in southwestern or eastern Ontario; and
- Have a project budget greater than $500,000 (or $200,000 if in a rural community).
Eastern Ontario Development Fund (EODF)
EODF provides financial support to Canadian SMEs expanding operations and creating jobs in Eastern Ontario. Funding is suited to accommodate projects that will involve investing in new capital equipment, improving existing operations and processes, and pursuing new market opportunities.
- Amount: Up to 15% of eligible expenses to a maximum $1.5 million in non-repayable grant funding for projects with budgets up to $10 million. Projects with budgets that exceed this amount may be eligible to receive a combination of grants and loans of up to $5 million.
- Eligibility: Applicants must be incorporated for at least three years, have 10 or more full-time employees, and operate in Eastern Ontario. Projects must create at least 10 new full-time positions.
NGen Manufacturing Program
The NGen Manufacturing Program supports businesses for the research and development of ground-breaking technology transformation.
- Amount: Offsets up to 44.4% of eligible project expenses. Project costs should be between $1M and $20M, providing non-repayable funding of $444,400 to $8,880,000.
- Eligibility: Open to all industries and sectors. Projects must be transformational in scale or impact and be of wider benefit to Canada’s advanced manufacturing ecosystem. Must have a minimum of three private-sector project partners; lead partner and participants must be NGen members. No single partner can receive more than 70% of reimbursement.
Eastern Ontario Rural Innovation Initiative (RII)
RII accelerates the growth of innovative SMEs in rural Eastern Ontario. For-profit businesses and non-profit organizations can access funding to advance the global competitiveness and economic diversification of rural Ontario.
- Amount: SMEs can access up to 50% of eligible project costs to a maximum $100,000 in non-repayable grants. Non-profit organizations may receive up to 50% of eligible project costs to a maximum $500,000.
- Eligibility: Private, for-profit, high-growth SMEs with potential for accelerated growth through innovation. Also supports non-profits with a mandate to support rural and Eastern Ontario business development.
SCAP – Grow Ontario Market (GOM)
The Canadian government along with the Government of Ontario is investing upwards of $6 million through the Sustainable Canadian Agricultural Partnership (SCAP) to help eligible agri-food businesses and industry organizations in Ontario to export their products into local and global markets to boost economic growth and innovation.
- Amount: For eligible producers & food and beverage processors, the funding amount is up to 50% of total eligible costs, to a max of $60,000.
- Eligibility: Applicants may be eligible for this program if they are in Ontario; are an agri-food business; a food or beverage processor; or a farm business.
Top Western Canada Agriculture Funding Programs
In addition to the Canadian agriculture grants and loans listed above, food producers and processors based in British Columbia, Alberta, Saskatchewan, and Manitoba may qualify for provincially funded or targeted incentives. The top one to consider is:
Western Business Scale-up and Productivity (BSP) Program
BSP helps businesses with high growth potential adopt/adapt innovative technologies that support productivity, grow operations, and increase exports to global markets.
- Amount: Repayable contribution (no-interest loan) of up to 50% of eligible project expenses to a maximum $5 million per project and $10 million per applicant.
- Eligibility: Must maintain profitable operations in Western Canada (British Columbia, Alberta, Saskatchewan, or Manitoba) for at least two years and be incorporated at the time of application.
Top Atlantic Canada Agriculture Funding Programs
In addition to the Canadian agriculture grants and loans listed above, food producers and processors based in New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island may qualify for provincially funded or targeted incentives, including:
Atlantic Business Scale-up and Productivity (BSP) Program
The Atlantic BSP program helps businesses with high growth potential to adopt/adapt innovative technologies that support productivity, grow operations, and increase exports to global markets.
- Amount: Grant or repayable contribution (no-interest loan) of up to 50-75% of eligible project expenses to a maximum $20 million.
- Eligibility: Must operate in Atlantic Canada (New Brunswick, Newfoundland and Labrador, Nova Scotia, Prince Edward Island).
How to Navigate the Government Funding Process
Developing and executing a strategic government funding plan starts by identifying manufacturing grants and loans that could support your business’ upcoming projects. Mentor Works, a Ryan Company can support this important first step towards funding success; simply contact us to start a conversation about accessing funding for your upcoming growth projects.
For more information about how to manage, finance, and grow a successful agricultural business, download the free Canadian Agri-Business Growth Guide.