The Canadian government launched the Canadian Agricultural Loans Act (CALA) Program to expand the number of loans available to farmers and agricultural cooperatives. The program aims to strengthen the agriculture industry and make it easier for cooperatives to exploit market opportunities. For example, farmers can get loans under the CALA Program to start, expand, and enhance their farms, while agricultural cooperatives can get loans to process, distribute, or market their produce.  

The CALA Program's goal

The CALA Program seeks to assist the agricultural industry's revitalization and provide agricultural cooperatives with the tools they need to take advantage of market opportunities. The program aids in promoting economic growth in rural regions by lending money to farmers and agricultural cooperatives. Farmers can use the loans to buy land, upgrade and build structures, and buy equipment. Loans are available to agrarian cooperatives to finance initiatives to increase their capacity for distribution, processing, and marketing. Thanks to the CALA Program, farmers and agricultural cooperatives can take on initiatives that would otherwise be out of their financial reach.  

Money that is available through the CALA Program

If a qualified loan made under the CALA Program suffers a net loss, the federal government will guarantee a payback of 95% of that loss. For any one farm enterprise, the total loan ceiling cannot exceed $500,000. For the purchase of real estate and the building or improvement of facilities, loans may not exceed $500,000 or exceed $350,000 for all other loan purposes, including consolidation or refinancing. With the Minister's approval, agricultural cooperatives may obtain loans with a maximum aggregate loan limit of $3 million.  

Program Execution

Loans are issued and managed by lenders under the CALA Program, including banks and credit unions. Lenders are expected to give CALA loans with the same caution and wisdom as when conducting regular business. The government guarantees all loans to eligible farmers and agricultural cooperatives under the CALA Program, allowing lenders to continue their typical lending practices. For example, a lender has 60 days to offer a CALA loan starting from the purchase date if a purchase has already been made. In addition, lenders can use the CALA Online Loan Registration System to register loans and send the required registration fee.  

Administrative Instructions

The CALA Program is governed by the Canadian Agricultural Loans Act, the Canadian Agricultural Loans Regulations, and the Lenders' Guidelines. The goal of the program and the authority of the Minister of Agriculture and Agri-Food are laid forth in the Canadian Agricultural Loans Act. The eligibility requirements for loans under the program are outlined in the Canadian Agricultural Loans Regulations. Lenders are given direction in managing CALA loans by the Lenders' Guidelines.   Conclusion A loan guarantee program called the Canadian Agricultural Loans Act (CALA) Program was created to boost the number of loans available to farmers and agricultural cooperatives. With the help of the initiative, cooperatives will be better equipped to take advantage of market opportunities and assist in the regeneration of the farming industry. The CALA Program offers loans to farmers and agricultural cooperatives to help them start, expand, and enhance their farms and fund initiatives to increase their capacity for processing, distribution, and marketing. Loans are issued and managed by lenders under the CALA Program, including banks and credit unions. The Canadian Agricultural Loans Act, the Canadian Agricultural Loans Regulations, and the Lenders' Guidelines all contain administrative requirements and eligibility standards that must be met before loans can be given under the CALA Program. In addition, the CALA Program fosters the growth of the agricultural industry and promotes economic development in rural areas by facilitating access to funds.