Canadian Agricultural Loans Act (CALA)

The CALA Program is run by Agriculture and Agri-Food Canada. A buyer of a farm business may meet it as one possible way to finance the purchase. The lender makes the loan, and the guarantee runs to the lender: the program page says the federal government guarantees repayment of a share of a net loss on an eligible loan.

What the program lists as eligible

AAFC gives examples of eligible loan purposes, including the purchase of land, the purchase of livestock and the purchase of shares for inter-generational farm transfers. The operation must meet the definition of “farmer” and “farming” in the Act itself. Maximum loan limits apply, and they are set out on the program page, so read the current figures there rather than relying on a summary.

What to check or ask

• Whether your lender offers CALA Program loans at all
• Whether your purchase fits an eligible purpose on the AAFC list, or falls under the ineligible examples
• Whether the loan limits leave room for the other loans you plan to combine, as covered in stacking CSBFP, BDC and a credit union loan
• How the program compares with Farm Credit Canada financing