Sponsor

Agriculture and Agri-Food Canada (AAFC)

Program

Agricultural Clean Technology (ACT) 

Description

As part of the Government of Canada’s strengthened climate plan [1], the new Agricultural Clean Technology Program aims to create a supportive environment for the development and adoption of clean technologies that will promote sustainable growth in Canada’s agriculture sector, while helping to drive the changes required to achieve a low-carbon economy.

Program Priorities

The Agricultural Clean Technology Program [2] will provide contributions that focus on three priority areas:

• Green energy and energy efficiency, to support better management of energy intensive processes, and introduction of energy generation.
• Precision agriculture, which uses a wide range of technologies to gather and process data for the purpose of guiding targeted actions that improve the sustainability, efficiency and productivity of agricultural operations.
• The bioeconomy, which employs technologies that use agricultural waste and by-products for energy and bio-product generation.

The new program will allocate $50 million for the purchase and installation of more efficient grain dryers for farmers across Canada and $10 million over the next two years to power farms with clean energy and move off diesel.

Program Streams

The program includes two funding streams: the Research and Innovation Stream and the Adoption Stream.

Research and Innovation Stream

This stream will support pre-market innovation, including research, development, demonstration and commercialization activities that address the program’s three priorities. This stream will run from 2021 to 2028. The Research and Innovation Stream includes non-repayable funding for research, development and demonstration activities, and repayable funding for commercialization and scale-up activities.

Adoption Stream

This stream will support the purchase and installation of proven clean technologies and solutions that address the three priority areas, respond to environmental sustainability, and reduce greenhouse gas emissions. This stream will run from 2021 to 2026. Funding under this stream is non-repayable for eligible projects.

Eligibility

Eligible applicants for this stream are:

• For-profit organizations, including agri-food processors
• Not-for-profit organizations, including co-operatives
• Indigenous groups

Examples of eligible activities under this stream include, but are not limited to:

• Research and development of zero-emissions on-farm equipment
• Piloting and evaluating precision agriculture technologies that improve real time input use or nutrient management
• Demonstration or commercialization of anaerobic digesters or agri-based bio-products

Funding Availability

Funding type

Contributions will be:

• non-repayable for research, development and demonstration activities.

• repayable* where activities involve commercialization and scale-up.

*Contributions will be repaid over a period of up to 10 years following project completion. The amount to be repaid and the schedule of payments will be set out in the negotiated Contribution Agreement. Repayments will normally begin 1 year following the completion of the project. Interest is not charged on the contribution funding, with the exception of late payments and debts owed to the Crown, should such situations arise.

Funding by project

The maximum amount payable to a recipient will generally not exceed $2 million per project.

Funding by recipient

The maximum amount payable to a recipient with multiple projects will generally not exceed $5 million.

Cost-sharing

Eligible project costs will normally be shared as follows:

• A maximum contribution of 50% from the program

• A minimum contribution of 50% from the applicant

The program may provide a more favourable cost-share ratio (60:40) where the majority of the business (more than 50%) is owned or led by one or more under-represented groups. Under-represented groups include:

• Women

• Youth, aged 35 or under

• Indigenous groups

• Visible minorities

• Persons with disabilities

Stacking maximum level of total government funding (federal, provincial/territorial, and municipal funding) will generally not exceed 75% of eligible costs per project.

Applications must clearly indicate all sources of project funding, including the applicant's contribution and other partners' sources of funding. These may include:

• other federal government departments

• provincial/territorial/municipal governments

• industry or partners, such as:

  • industry associations and networks

  • businesses

  • academic institutions

  • Indigenous groups

An example of a sample budget breakdown is provided in the Applicant Guidelines [3].

Maximum Project Value

The maximum amount payable to a recipient will generally not exceed $2 million per project.

Indirect Costs

10%

Project Duration

Program funding for the Research and Innovation Stream is $50 million over seven years, with this stream ending March 31, 2028.

Special Notes

Please note that research activities carried out in the context of COVID-19 need to adhere to the University of Guelph COVID-19 research principles, policies, guidelines and processes as they may be updated from time to time and communicated on the Office of Research web-page [4].

More information can be found in the Applicant Guidelines [3] and the Agricultural Clean Technology Program: Adoption Stream website. [2]

Applications to the program will be accepted on a continuous basis until funding has been fully allocated or until otherwise announced by the program. All projects under the R&I Stream must be completed by March 31, 2028.

How to Apply

1. Complete a Project Summary form

The Project Summary form will help to determine your project’s eligibility and alignment with program criteria and priorities prior to you preparing a full application. It will also facilitate a discussion between you and program staff about your project.

2. Complete and submit a Project Application form

Following the submission of a Project Summary form, you may be invited to submit a Project Application form. Program staff would provide the form and instructions.