The Canadian Agricultural Loans Act (CALA) Program is a loan guarantee program designed to increase the availability of loans to farmers and agricultural co-operatives. Farmers can use these loans to establish, improve, and develop farms, while agricultural co-operatives may also access loans to process, distribute, or market farming products.
Under CALA, the federal government guarantees to the lender the repayment of 95% of a net loss on an eligible loan issued. The maximum aggregate loan limit for any one farm operation is $500,000.
Loans are limited to a maximum of:
The maximum aggregate loan limit for agricultural co-operatives is $3 million, with the Minister’s approval.