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Canadian Agricultural Loans Act (CALA) Program

Agriculture and Agri-Food Canada · Federal

In plain language

Federal loan-guarantee that unlocks competitive bank financing for NL farmers who might not otherwise qualify. Lender gets 95% government backing, so credit hurdles drop; borrower gets prime+1% rates and up to 15-year terms. Cap is $500K per farm, $3M for co-ops. Eligible uses: land, buildings, livestock, equipment, quota, breeding stock, fencing, drainage, and start-up costs. Not a grant — it's still a commercial loan — but the pricing beats non-guaranteed agricultural lending. NL farmers apply through any bank or credit union that participates.

Realistic range
$25,000 – $500,000
Avg award
$150,000
Max advertised
$500,000
Cost share
Accessibility
4 / 5
Effort
2 / 5
Deadline
Continuous intake
Repayable?
Yes

Who qualifies

Entity types
Sole Proprietor, Incorporated, Incorporated, Coop
Sectors
Agriculture
Regions
NL Wide
Demographics prioritized
None specifically

What you'll have to report

Standard loan servicing; lender reports annually to AAFC; borrower covenants on use of funds (must be for eligible farm purchases/improvements).