Canadian Agricultural Loans Act 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.

Objectives

The Canadian Agricultural Loans Act (CALA) program is a financial loan guarantee program that gives farmers easier access to credit.

Available Funding

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.

Maximum Loan Amounts

Loans are limited to a maximum of:

  • $500,000 for land and the construction or improvement of buildings.
  • $350,000 for all other loan purposes.

The maximum aggregate loan limit for any one borrower is $500,000.

The maximum aggregate loan limit for agricultural co-operatives is $3 million, with the Minister's approval.

The maximum amount eligible for consolidation/refinancing is the total of the outstanding principal balances of the loans to be consolidated/refinanced, to a maximum of $350,000.

For example: If a farmer gets a CALA loan for $300,000 for a tractor, he can still access up to $200,000 for land purchase or building repair, or $50,000 for another implement and $150,000 for land purchase or building repair.

Program Delivery

On behalf of AAFC, participating financial institutions administer loans under the CALA.

Administrative Guidelines

In June 2009, the Minister of Agriculture and Agri-Food introduced amendments to the Farm Improvement and Marketing Co-operatives Loans Act (FIMCLA) which provides farmers with increased access to credit. The Canadian Agricultural Loans Act (CALA) builds on and replaces the previous FIMCLA.