Canadian Agricultural Loans Act (CALA) Business Plan
The Canadian Agricultural Loans Act (CALA) program is a Government of Canada initiative that makes it easier for farmers and agricultural co‑operatives to access credit. By guaranteeing a portion of loans made by financial institutions, the program encourages banks and credit unions to support farmers who need financing to establish, improve, and expand their agricultural operations.
Official Government of Canada site:
Canadian Agricultural Loans Act (CALA) Program – Agriculture and Agri‑Food Canada
What Is the CALA Program?
The CALA program is designed to improve access to financing for farmers and agricultural co‑operatives. It provides a federal government loan guarantee of up to 95% on eligible agricultural loans made by approved lenders such as banks and credit unions.
This guarantee helps reduce the lender’s risk, enabling them to offer loans that may not otherwise be approved under regular commercial lending terms. The funds can be used for a wide range of agricultural purposes—from buying land to improving farm productivity.
About the CALA Program – Agriculture and Agri‑Food Canada
Who Can Apply
- Existing farmers looking to expand, improve, or refinance their operations
- Beginning farmers establishing new farms
- Agricultural co‑operatives with at least 50% farmer membership
Eligible borrowers must operate within Canada and engage in recognized farming activities such as crop production, livestock farming, greenhouse operations, or aquaculture.
What Can Be Financed
- Purchase of land and buildings for farm operations
- Construction, repair, or improvement of farm structures
- Purchase or installation of equipment and machinery
- Livestock and breeding stock acquisition
- Farm debt consolidation (refinancing high‑interest loans for improved cash flow)
What Can Be Financed – CALA Program
Loan Limits and Terms
- Up to $500,000 for land and building purchases or improvements
- Up to $350,000 for all other eligible purposes
The repayment period varies depending on the use of funds — generally up to 15 years for land purchases and up to 10 years for other assets.
How the CALA Program Works
The CALA program operates through participating financial institutions. Farmers apply for financing directly with their local bank or credit union, which then registers the loan under CALA with Agriculture and Agri‑Food Canada (AAFC).
This process allows farmers to continue working with their preferred lender while benefiting from a government‑backed loan guarantee.
How the CALA Program Works – AAFC
Why the CALA Program Matters
- Improved access to capital through government‑backed guarantees
- Reduced lending risk for financial institutions
- Support for farm modernization and productivity improvements
- Longer repayment terms aligned with agricultural cycles
This combination helps strengthen farm cash flow, supports expansion, and promotes sustainable rural growth.
The Role of The Biz Plans
At The Biz Plans, we specialize in preparing professional, CALA‑compliant business plans that meet both lender and program standards. Our plans are structured to show viability, repayment capacity, and growth potential — the three factors banks and AAFC evaluators look for most.
With a background in corporate finance, CPA‑level financial modeling, and agricultural planning, we help clients:
- Build financial projections consistent with farm production cycles
- Prepare lender‑ready documentation that aligns with CALA’s loan requirements
- Demonstrate repayment capacity and creditworthiness through detailed cash flow modeling
- Support both new and established farmers in securing funding
Our CALA business plans are accepted by major financial institutions across Canada and are tailored to each client’s unique agricultural operation.
How to Apply for a CALA Loan
- Contact your financial institution – ensure your bank or credit union participates in the CALA program.
- Prepare your business plan and financial forecast – The Biz Plans can assist you in developing a professional, program‑aligned plan.
- Submit your application directly to your lender.
- The lender reviews your loan proposal and, if approved, registers it with Agriculture and Agri‑Food Canada under the CALA program.
Additional Government Resources
- Canadian Agricultural Loans Act – Main Page
- Forms and Guides for Lenders and Borrowers
- Contact Agriculture and Agri‑Food Canada
Final Thoughts
The Canadian Agricultural Loans Act (CALA) program remains one of the most effective ways for farmers and co‑operatives to access affordable credit for growth and modernization. With a strong business plan that demonstrates profitability and repayment capacity, approval rates under this program are exceptionally high.
At The Biz Plans, we help agricultural entrepreneurs turn ideas into lender‑ready proposals. Our detailed, data‑driven business plans combine professional financial modeling with practical farm management insight — giving both banks and AAFC the confidence to support your project.