Table of contents
Introduction
Financing search tools and directories
Programs
Introduction
Agricultural businesses have their own specific funding needs. The high cost of basic farming equipment is one of many challenges that new farmers may encounter. Changing weather patterns, technology or land costs can all affect your profit. From start-up capital to funds for innovative new farming techniques, the costs of doing business can add up. This guide will give you an overview of the financing search tools and programs that are available to agricultural businesses in Ontario.
For general information about business financing, read our Financing a business guide.
Financing search tools and directories
In addition to the programs listed in this guide, the following resources also provide information on financing available for agriculture.
AgPal Program and service finder
Use AgPal to search for programs and resources to help with business management, farming, innovation and community support. You can find information on federal and provincial agricultural programs that are available in Ontario and across Canada.
Search online:
AgPal
Farm Credit Canada (FCC) Loan Programs
If your business is a farm operation, food processing business, farm equipment plant or an ag-biotech company, you could be eligible for financing to:
- Purchase or improve land, buildings or equipment
- Buy quotas or livestock
- Expand your business domestically or export your products
- Make environmental improvements
- Fund diversification projects
Financing includes support programs specifically for Indigenous agriculture and food entrepreneurs (on and off-reserve), women entrepreneurs and young farmers.
Search online:
FCC financing
Programs
Depending on the type of agricultural business you have, specific financing programs that may apply include:
Advance Payments Program (APP)
You may be eligible to get up to 50% of the average market price of your stored crops or unsold livestock. Cash advances of up to $1,000,000 are delivered by industry associations, marketing boards and co-operatives in the agricultural sector.
Read online:
Advance Payments Program
Contact your local program delivery organization:
Advance Payments Program Administrators
AgriInvest
You could receive up to $10,000 from federal, provincial and territorial governments to match any savings you have set aside to protect your agriculture business from a decline in profits.
Contact Agriculture and Agri-Food Canada:
1-866-367-8506
AgriInvest
AgriStability Payments
You may be able to get insurance to help cover a loss of over 30% of your earnings for an average year.
To be eligible, you must:
- Farm at least six straight months during the year
- Report your farming income to the Canada Revenue Agency
- Finish a production cycle (or try to finish it) in the year you apply
- Pay an annual fee for your coverage
Contact Agricorp:
1-888-247-4999
AgriStability Program
Canadian Agricultural Loans Act (CALA) Program
As an agricultural producer, you could qualify for a repayable loan guarantee of up to $500,000 to help you access credit for your business.
Eligible applicants can include:
- Existing farmers
- Beginning/start-up farmers
- Farmers taking over the family farm
- Specific agricultural co-operatives
Contact CALA Program:
1-866-367-8506
CALA Program
Farm Property Class Tax Rate Program
If your farm business earns more than $7,000 per year in gross farm income and you hold a valid Farm Business Registration number, you could save 75% off the municipal residential tax rate. If you are just starting up, your new business may still be eligible for the program under certain conditions.
Contact the Farm Property Class Tax Rate Program (Agricorp):
1-888-247-4999
Farm Property Class Tax Rate Program
Ontario Ministry of Agriculture, Food and Agribusiness (OMAFA) funding programs
Explore the funding that may be available to you as a farmer, food and beverage processor or a bioproducts producer.
Contact OMAFA
1-877-424-1300
Agriculture and food – Funding opportunities
Price Pooling Program (PPP)
If you are an agricultural producer and a member of an agricultural marketing agency that participates in this price guarantee program, you could get protection against unexpected drops in market prices.
Other benefits of this program include:
- Initial payment upon product delivery
- Locked-in minimum rate return (price guarantee)
- Equal returns for products of like grade, variety and type
- Ability to sell products during better market conditions (better price)
Contact Agriculture and Agri-Food Canada:
1-866-367-8506
Price Pooling Program
AgriAssurance Program
You may be eligible for funding of up to $50,000 to help you get certification or adopt the tools needed to meet market requirements.
You must be directly involved in growing, harvesting, processing, or otherwise transforming or consolidating your products.
For details on the program requirements, eligibility criteria and application process, refer to Agriculture and Agri-Food Canada:
1-866-367-8506
AgriAssurance Program