Canadian Agricultural Loans Act (CALA) Program

What Is the CALA Program?

The Canadian Agricultural Loans Act (CALA) Program is a federal loan guarantee run by Agriculture and Agri-Food Canada. It does not hand money directly to farmers. Instead, the Government of Canada guarantees 95% of net losses on eligible loans made through participating lenders. That backstop makes lenders far more willing to approve financing for farm operations that might otherwise struggle to secure credit.

If you are looking to buy land, put up a new building, upgrade facilities, or finance equipment for your farm, CALA is one of the most accessible federal tools available to get a lender on your side.

Key Program Details

• Program: Canadian Agricultural Loans Act (CALA) Program

• Issuing Agency: Agriculture and Agri-Food Canada

• Maximum Loan Amount: Up to $500,000 per farm operation; up to $3 million for eligible agricultural co-operatives (ministerial approval required)

• Government Guarantee: 95% of net losses on eligible loans

• Deadline: Open with no fixed intake window or application deadline.

• How to Access: Apply through a participating lender such as banks, credit unions, and other financial institutions that have registered with the program

Who Is Eligible?

Two groups can access loans under CALA:

Farmers

Any farmer looking to establish, improve, or develop a farm operation in Canada. This includes new entrants getting started and established operations looking to grow or upgrade infrastructure.

Agricultural Co-operatives

Agricultural co-operatives that process, distribute, or market farming products can qualify for up to $3 million, subject to ministerial approval. Standard farm operations are capped at $500,000.

What Can a CALA-Backed Loan Be Used For?

CALA-backed loans are designed to cover major farm investments, including:

• Land purchase

• Construction or improvement of farm buildings

• Farm equipment (tractors and implements are cited as examples in the program)

• Other purposes related to establishing, improving, or developing a farm operation

A Note on Cattle Handling Equipment

CALA broadly covers farm equipment, and it explicitly references tractors and implements as eligible examples. Whether cattle handling equipment such as a hydraulic chute, crowding tub, or corral system qualifies under your specific loan will depend on how your lender categorizes and structures the application. Confirm your equipment selection with your lender and a program administrator before purchasing. Do not assume eligibility without that confirmation.

How to Apply for a CALA Loan

CALA is not applied for directly through the federal government. Here is how the process works:

• Identify your project: Know what you need to finance and roughly how much it will cost.

• Find a participating lender: Contact your bank, credit union, or another financial institution and ask whether they participate in the CALA Program.

• Work through the lender: The lender handles the loan application and submits the guarantee request to Agriculture and Agri-Food Canada on your behalf.

• Confirm eligible uses: Before finalizing your equipment or project list, verify with your lender and the program that your planned purchases qualify.

For full program details, visit the Agriculture and Agri-Food Canada program page at: https://agriculture.canada.ca/en/programs/canadian-agricultural-loans-act