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Agriculture Services

Canadian Agricultural Loans Act (CALA) Loan


This is a federal government guaranteed loan program designed to provide farmers and farmer co-operatives with farm financing. Operating under the Canadian Agricultural Loans Act (CALA) Program, it accommodates a wide variety of financing needs.

  • A CALA Loan may allow you to:
    • purchase farm real estate, livestock (breeding herd), and farm equipment (including repairs),
    • construct farm buildings,
    • purchase crop storage condominiums, or
    • consolidate debt (under special circumstances).
    • supplement your farm’s energy use with power from renewable sources
  • Eligible applicants include:
    • Existing farmers
    • Beginning/start-up farmers
    • Farmers taking over the family farm
    • Agricultural co-operatives with a majority (50% plus 1) farmer membership
  • Floating and/or fixed rate payments may be made on a monthly, quarterly, semi-annual or annual basis.
  • Usually the asset being financed is used as security for the loan.

Amounts:

90%1 of the purchase price may be financed up to a
  • maximum $500,0002 per farmer, or
  • maximum $3,000,000 per cooperative.

1 90% purchase financing is available to beginning/start-up farmers only. For all other applicants, the maximum available financing is limited to 80% of the purchase price. Additional government requirements are applicable to both types of financing.
2 The maximum loan limit for the purchase of land and/or the construction or improvement of buildings is $500,000. For all other loans, the maximum loan limit is $350,000. All loans are subject to credit approval.