Available Federal Sustainable CAP Programs in Canada

Niels Jensen
Insights
| 10/16/2023

In Canada, the federal government has introduced a variety of Federal Sustainable Canadian Agriculture Partnership (CAP) Programs designed to foster innovation, enhance marketability, and ensure overall sustainability in the agriculture sector. These programs present numerous opportunities for farmers and agribusinesses to obtain financial backing, tap into cutting-edge technologies, and innovate solutions to age-old challenges.

Crowe MacKay’s Agriculture industry experts provide an in-depth look at various Federal Sustainable CAP Programs in Canada. They highlight each program's focus, financial reward, eligibility criteria, and who should consider applying. If you require assistance, contact us in Alberta, British Columbia, Northwest Territories or the Yukon.

Federal Sustainable CAP Programs

Available Federal Sustainable CAP Programs

AgriMarketing Program

The AgriMarketing Program is geared towards boosting your brand's exposure domestically and internationally. For instance, an established apple orchard in British Columbia could leverage this program to enter European markets. It offers financial support for promotional activities, market research, and consumer and trade engagement. Farmers with established products, agribusinesses looking to branch into new markets, and cooperatives wanting to expand their customer base should consider applying. To tap into this program, you must provide a comprehensive marketing strategy delineating how you intend to leverage the funds to penetrate or expand new markets. Although the program offers a substantial financial boost, recipients must adhere to stringent marketing metrics.

AgriCompetitiveness Program

Fostering a competitive edge in today’s agricultural landscape is crucial, and the AgriCompetitiveness Program can be an instrumental part of achieving this. This program is best suited for agricultural educators, traditional farmers seeking to modernize, and agricultural organizations looking to upskill their members. The program provides financial assistance for education, mentorship, and skill development. An agricultural educational institution could be a great candidate for this program, receiving funding to launch online courses aimed at modern farming techniques. Eligibility requirements focus on the applicant's commitment to long-term growth and competitiveness in the agricultural sector. Be prepared to produce a compelling case for how the support will specifically impact your competitiveness on a micro or macro scale.

AgriInnovate Program

The AgriInnovate Program is ideal for technology enthusiasts looking to modernize their operations or startups with cutting-edge agricultural solutions. A startup, for example, developing drone technology for crop monitoring could use this program to move from prototype to market. It offers repayable contributions for commercializing and adopting innovative agri-based products, technologies, or services. Eligibility rests on a robust proposal that outlines the innovation's efficacy, scalability, and market potential. The program may be advantageous but expect a rigorous evaluation process that scrutinizes the commercial viability of your invention.

AgriScience Program

The AgriScience Program is designed to support pre-commercialization activities and cutting-edge research that benefits the agriculture and agri-food sector. This program is divided into two key components: Clusters and Projects. The Clusters component is designed for industry-led research networks, focusing on addressing significant sectoral challenges. Meanwhile, the Projects component supports shorter-term, smaller-scale, or high-risk research activities. This program is particularly beneficial for research organizations, scientists, and innovators seeking to make breakthroughs in sustainability, market expansion, and risk management in agriculture.

Ideal projects could include a research institution studying the impact of climate change on crop yields for the Clusters component for a multi-year research grant. Comparatively, a university research team studying soil health could apply under the Projects component for a grant to explore organic fertilizers' effects on crop yield.

Federal Sustainable CAP Programs

AgriDiversity Program

For organizations and individuals committed to diversity and inclusion in agriculture, the AgriDiversity Program is an excellent fit. The program aims to support underrepresented groups like youth, women, and Indigenous communities. A non-profit aiming to increase Indigenous participation in sustainable farming could use these funds to run educational workshops. The program provides funding to help these groups participate more fully in the Canadian agricultural sector. Eligibility rests on clear plans that outline how the program will help the applicant overcome barriers or achieve specific outcomes related to diversity and inclusion.

AgriAssurance Program

The AgriAssurance Program serves as a robust mechanism for elevating the global stature of Canadian agricultural products, ensuring they meet market demands for quality and transparency. The program is bifurcated into two sub-programs: "AgriAssurance Program: Small and Medium-sized Enterprises (SMEs)" and "AgriAssurance Program: National Industry Association."

AgriAssurance Program: Small and Medium-sized Enterprises (SMEs)

The SME component is geared towards small and medium-sized enterprises eager to implement assurance systems or standards to meet new market and customer demands. Through this program, SMEs can receive funding to obtain third-party certification that proves they meet emerging domestic and international specifications.

AgriAssurance Program: National Industry Association

On the other hand, the National Industry Association component serves national agricultural organizations aiming for industry-wide advancements. Through this component, these associations can acquire support for developing market-oriented assurance systems or standards, thereby benefiting the entire sector.

To provide more clarity on what projects could utilize these programs, let's say a Canadian dairy producer was aiming to export organic milk to the United States, they could use the SME component to acquire funding for obtaining USDA organic certification. Meanwhile, a National Industry Association working on a nationwide organic standard could use the other component for development and implementation. This bifurcated structure offers ample support for both individual enterprises and industry-wide initiatives.

Federal Sustainable CAP Programs

AgriStability

AgriStability provides income stability to farmers facing significant income declines. Farmers who experience income fluctuations due to uncontrollable circumstances should consider applying for this program. While the program offers some financial stability, you must understand the detailed financial metrics and eligibility criteria.

AgriInsurance

AgriInsurance is designed to cushion the financial blows caused by adverse climatic conditions, diseases, or pest infestations. This program best suits commercial farmers engaged in high-risk agriculture, such as livestock rearing or grain farming. However, be prepared to face stringent eligibility conditions and rigorous assessments.

AgriInvest

For farmers willing to invest in risk management and income stabilization, AgriInvest is a saving grace. The program offers matching contributions from the government for your AgriInvest account, which can then be used during financially challenging times. Any farmer or agribusiness facing volatile market conditions should look into this program.

AgriRecovery

AgriRecovery aims to help farmers recover from natural disasters or other catastrophic events. This program is for you if your farm has been affected by unforeseen disasters like wildfires, flooding, or drought. However, eligibility often hinges on the severity and scale of the disaster, and funding is typically event-specific.

Conclusion

The landscape of Federal Sustainable CAP Programs in Canada is robust and varied, providing options for every facet of agriculture—from market expansion and innovation to research and diversity. With due diligence and strategic planning, these programs can offer financial respite and a roadmap to long-term sustainability and market competitiveness. If you're involved in Canadian agriculture, these federal programs provide a valuable resource for scaling your operations, fostering innovation, and contributing to a more sustainable agricultural landscape.



This article has been published for general information. You should always contact your trusted advisor for specific guidance pertaining to your individual needs. This publication is not a substitute for obtaining personalized advice.


If you are in the Agriculture Industry and require personalized support from a financial expert, Crowe MacKay’s advisors have the knowledge and expertise to support farming and agriculture businesses.

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Niels practice focuses on clients ranging from small, owner-managed businesses to large privately-held businesses. His client service focus spans across many areas including audit, accounting, taxation issues, and numerous special consulting engagements. Niels industry expertise clients include agricultural producers, municipalities, manufacturing, automotive dealerships, and non-profit organizations.
Niels Jensen
Niels Jensen
Partner
Edmonton

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