Alberta Agriculture Grant, Tax Credit, and Loan Funding Programs

To support this vital industry, various government grants, tax credits, and loan programs are available to assist farmers, agribusinesses, and related organizations.

Understanding and accessing these government funding opportunities can significantly enhance the sustainability and profitability of agricultural operations in Alberta.

For a more general article about government funding available for Alberta business projects, please read our recent Top Alberta Grant, Loan, and Tax Credit Programs for 2025 blog, and make sure to register for our weekly newsletter for timely updates in business funding for Alberta.  

Government Grants for Alberta Agriculture

Federal and provincial government funding grants can provide nonrepayable funding to support specific projects or initiatives within the agricultural sector. In Alberta, several government grant programs are designed to foster innovation, sustainability, and community development.

Sustainable Canadian Agricultural Partnership (Sustainable CAP)

The Sustainable Canadian Agricultural Partnership (Sustainable CAP) is a $3.5-billion, five-year agreement (April 1, 2023, to March 31, 2028) among federal, provincial, and territorial governments aimed at strengthening the competitiveness, innovation, and resiliency of the agriculture, agri-food, and agri-based products sector.

In Alberta, Sustainable CAP offers various programs tailored to support producers and processors. For instance, the Alberta Value-Added Program supports the diversification and growth of Alberta’s value-added food and bio-industrial processors through investment in projects that increase company sales and production capacity, expand market opportunities, and create jobs in Alberta.

Agricultural Societies Grant Program

Administered by Alberta Agriculture and Irrigation, the Agricultural Societies Grant Program provides funding to agricultural societies for major infrastructure repairs and organizational activities.

In the 2024/25 fiscal year, the program awarded $2.5 million in grants to societies across the province. Eligible activities include governance, leadership training, and agricultural events and programs. The application intake for the 2025/26 grants is expected in Spring 2025.

Canadian Tax Credits for Alberta Agriculture Projects

Canada’s multitude of tax credits serve as incentives for businesses across the country to invest in specific sectors by reducing their tax liabilities. Alberta has introduced tax credit programs to stimulate investment in agriculture facilities.

Agri-Processing Investment Tax Credit (APITC)

Launched in 2023, the Agri-Processing Investment Tax Credit (APITC) offers a 12% nonrefundable tax credit to corporations investing $10 million or more in building or expanding agri-processing facilities in Alberta.

The program aims to attract large-scale investments, diversify the economy, and create jobs in the agribusiness sector. Up to $175 million in tax credits is available for each project, and corporations have 10 years to claim the credit against their provincial income tax.

Scientific Research and Experimental Development (SR&ED) Tax Credit

The federal Scientific Research and Experimental Development (SR&ED) tax credit encourages agricultural businesses to innovate through research and development. Eligible companies conducting SR&ED activities in agriculture, including experimentation with crop yields, livestock management practices, sustainable farming techniques, and technological advancements, can claim substantial tax incentives.

The SR&ED program provides a refundable investment tax credit of up to 35% for qualifying Canadian-controlled private corporations (CCPCs) and a nonrefundable credit of 15% for other corporations, significantly offsetting research and development costs and fostering innovation in Alberta’s agriculture sector.

Government Loans in Alberta for Agriculture 

Canadian government loans can provide essential capital for agricultural producers and agribusinesses to start, develop, and expand their operations. Alberta offers several loan programs tailored to the needs of the agricultural community.

Western Business Scale-up and Productivity (BSP) Program

The Western Canada BSP Program is designed to assist high-growth businesses in adopting innovative technologies, enhancing productivity, and expanding into global markets.

Eligible businesses can receive repayable funding (interest-free loans) covering up to 50% of project costs, with a maximum of $5 million per application and a cumulative limit of $10 million per business.

To qualify, businesses must be in Western Canada, have been profitable for at least two years, and be incorporated at the time of application.

Agriculture Financial Services Corporation (AFSC) Lending

Since 1972, the Agriculture Financial Services Corporation (AFSC) has supported Alberta’s agricultural sector through various lending programs. These programs offer financing options for primary agricultural producers and agribusinesses, aiming to maintain a profitable agriculture sector and stimulate healthy rural communities. Loan capital can be sourced directly by AFSC or through partnerships with other financial institutions.

For personalized business support in navigating Canada’s vast government funding opportunities, consider consulting with our team of experts who can guide you through the application process and help maximize your chances of securing funding support.