Canadian Agricultural Loans Act (CALA) Program

The Canadian Agricultural Loans Act (CALA) program is a financial loan guarantee program that gives farmers easier access to credit. Farmers can use these loans to establish, improve, and develop farms; while Agricultural co-operatives may also access loans to process, distribute, or market the products of farming.

The CALA program builds on and replaces the previous Farm Improvement and Marketing Co-operative Loans Act (FIMCLA) program, which has helped farming operations grow their businesses by guaranteeing loans issued through financial institutions since 1988.

Through the CALA, the Government of Canada is supporting the renewal of the agricultural sector and enabling co-operatives to better seize market opportunities.

Program Highlights:

Farmers eligible for a CALA loan guarantee include:

• Existing farmers
• Beginning/start-up farmers (i.e. less than six years of farming
• Farmers taking over the family farm
• Agricultural co-operatives with a majority (50% + 1) farmer membership

The maximum loan is:

• $500,000 for land and the construction or improvement of buildings.
• $350,000 for all other loan purposes.
• The aggregate loan limit for any one farmer is $500,000.
• $3 million for agricultural co-operatives with the Minister's approval.

For more information, contact your financial institution or contact us.

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