Program Overview

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 is governed by the Canadian Agricultural Loans Act and the Canadian Agricultural Loans Act Regulations, and is accessed through financial institutions.

How the program works

Farmers access the CALA through their financial institution. When applying for a loan for a land purchase or an asset to be used in their farming operation, the loan can be registered under the CALA.

The farmer must pay a fee to have the loan registered and guaranteed under the CALA. This fee is 0.85% of the amount of the loan. The lender may also charge an administration fee of 0.25% of the amount of the loan for loans up to $250,000 (to a maximum of $250) or 0.1% of the amount of the loan for loans over $250,000.

Under the CALA, the federal government guarantees repayment of 95% of the loan to the lender, provided that the requirements of the Act and the Regulations have been respected.

Financial institutions are expected to take the same care and prudence in making CALA loans as would be taken in conducting ordinary business. The program has been designed to enable financial institutions to incorporate the CALA into their normal lending practice, while providing government guaranteed loans to farmers and agricultural co-operatives.

Alternate Formats

Help with Alternate Formats

CALA Brochure (PDF Version, 130 KB)