Agriculture loans

What is a Canadian Agricultural Loans Act Loan?

Running a successful farm takes planning, investment, and the right financial support. The Canadian Agricultural Loans Act (CALA) loan helps farmers access lower‑risk, government‑backed financing to strengthen or expand their operations. Whether you’re upgrading equipment, buying land or building new structures, a CALA loan can help your farm move forward with confidence. 

You can use the funds for land, livestock, equipment, or improvements that help your operation grow — all with the added confidence of competitive rates and flexible terms. With Conexus, you get clear support throughout the process and a partner who helps you make smart, forward‑focused decisions for your farm’s future.

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Benefits

Government-backed financing

Federal risk-sharing helps make borrowing more accessible.

The CALA loan is a government-backed financing program that supports farmers, ranchers and agricultural co-operatives in growing, expanding or upgrading their operations. The Government of Canada shares a portion of the lending risk with financial institutions, making it easier for agricultural producers to access the funds they need.

Flexible use of funds

Land, buildings, livestock or equipment — all eligible.

CALA loans can be used to purchase land, build or repair farm buildings, buy livestock, invest in equipment, or make improvements that increase the long-term productivity and sustainability of the operation.

Reduced barriers to entry

Lower down payments and longer amortizations available.

CALA loans offer reduced down payments and access to longer amortizations, plus affordable borrowing with competitive interest rates — helping producers across Canada access financing more easily, whether just getting started or planning the next phase of growth.

How does it work?

The Canadian Agricultural Loans Act (CALA) loan is a government‑backed financing program that supports farmers, ranchers, and agricultural co‑operatives in growing, expanding, or upgrading their operations. Through this program, the Government of Canada shares a portion of the lending risk with financial institutions, making it easier for agricultural producers to access the funds they need to move their farm forward. 

CALA loans can be used to purchase land, build or repair farm buildings, buy livestock, invest in equipment, or make improvements that increase the long‑term productivity and sustainability of the operation. Whether you’re just getting started or planning your next phase of growth, the CALA program helps make borrowing more accessible and affordable for producers across Canada.

Eligibility requirements

You may qualify for a CALA loan if you are:

  • A farmer, producer, or agricultural co‑operative in Canada 
  • Purchasing eligible assets, including equipment, livestock, real estate, or improvements to buildings 
  • Operating a farm or agricultural business with plans to invest in growth or sustainability

Additional criteria may apply depending on your operation and loan purpose.

Loan and fee details

With a CALA loan, you can:

  • Borrow up to program maximums for eligible asset types
  • Finance equipment, livestock, land purchases, or building improvements
  • Access structured repayment schedules designed for agricultural cash flow
  • Benefit from lower risk due to federal government backing

Any associated fees or charges will be reviewed with you by your advisor to ensure clarity and predictability.

FAQs

Common questions.

Here’s what people ask us the most.

Farmers, producers and eligible agricultural co-operatives in Canada may qualify. Your eligibility will depend on your operation, the purpose of the loan and the program requirements.

The Government of Canada shares a portion of the lending risk with financial institutions. This government backing can make it easier for eligible agricultural producers to access financing.

The current CALA program allows eligible borrowers to have up to $500,000 in total CALA loans, with up to $500,000 available for real property and up to $350,000 for other eligible purposes, subject to program requirements.

CALA financing may offer reduced down payment requirements compared with some conventional financing options. The amount required will depend on the purchase, asset and lending structure.

CALA loans are administered through financial institutions. Speak with a Conexus Ag Advisor about your investment plans and financing needs to determine whether CALA financing is right for your operation and learn what documentation is required.

Have questions?

Wondering how much you can borrow? Let's find out together.

Our Ag Advisors can help you explore loan and line of credit options, understand your choices and find a solution that fits your goals and budget.

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