How CASPP Funding Supports Innovation and Sustainability in Canadian Agriculture

How CASPP Funding Supports Innovation and Sustainability in Canadian Agriculture

Canadian agriculture is under pressure to change. Climate change affects crop yields and weather patterns. Production costs keep rising. Farmers and agri-food businesses also face competition from around the world. The Canadian Agricultural Strategic Priorities Program (CASPP) helps the sector respond. CASPP funds projects that encourage innovation and support environmental sustainability across the industry.

How CASPP Funding Works and Who Can Apply

The Canadian Agricultural Strategic Priorities Program (CASPP) is a federal program managed by Agriculture and Agri-Food Canada (AAFC). It is designed to support projects that have a national or sector-wide impact. CASPP does not fund single farms or private business improvements.

Who Can Apply

CASPP is open to organizations that work for the good of the whole sector:

• Not-for-profit organizations in Canada, such as industry associations, cooperatives, and marketing boards
• Indigenous organizations, including First Nations, Métis, and Inuit groups
• Provincial, territorial, or municipal governments
• For-profit organizations in rare cases, but only if the project clearly benefits the public or the sector as a whole

Applicants must be legal Canadian entities and able to sign a funding agreement with AAFC.

How Much Funding Is Available

• Up to $1 million per project
• AAFC will fund up to 50% of eligible project costs
• The rest (at least 50%) must be cash contributions from the applicant or their partners
• In-kind contributions are not accepted for the cost-share requirement

This approach ensures projects have support and investment from the sector itself.

Application Timing

• Applications are reviewed on a first-come, first-served basis
• Funding is available until March 31, 2028, or until all funds are committed

There is no set deadline. Strong proposals are considered as they arrive, so it is important to apply early.

What Types of Projects Does CASPP Support?

CASPP funds projects that address big challenges and opportunities for Canadian agriculture. Projects must show results that can be shared or adopted by others across the sector.

Some examples of eligible activities include:

• Testing and sharing new technologies like digital tools, automation, or data systems
• Pilot projects that try out new practices before they are used more widely
• Strategic planning to help industries adjust to market changes or new rules
• Knowledge sharing through the development of best-practice guides or national strategies

For instance, a national industry group might use CASPP funding to test precision agriculture equipment in several regions and share findings with farmers across Canada.

If you are not sure which program fits your project, GrantHub can help you compare CASPP with other funding options for agriculture and food.

How CASPP Supports Sustainability and Environmental Goals

Supporting sustainability is a top goal for CASPP. AAFC looks for projects that help the agriculture sector reduce risks and protect the environment while staying competitive.

CASPP-funded sustainability projects often focus on:

• Adapting to climate change, such as improving resilience to drought, flooding, or extreme weather
• Improving environmental performance, including soil health, water use, and reducing greenhouse gases
• Developing sustainable practices that can be used by many producers or regions
• Creating sector-wide strategies that align with Canada’s climate and sustainability goals

Because CASPP requires projects to benefit the wider sector, most sustainability projects produce tools, guidelines, or data that help many producers—not just one group.

Common Mistakes to Avoid

1. Focusing only on your own business
   CASPP does not fund projects that help just one farm or company. Projects must have a broader impact.

2. Counting on in-kind contributions
   Only cash contributions count toward your share of project costs. Volunteer work or donated equipment do not qualify.

3. Not explaining sector-wide impact
   AAFC wants proof of industry support, clear partnerships, or plans to share project results with others.

4. Delaying your application
   Because funding is first-come, first-served, waiting too long can mean missing out if the money is gone.

Frequently Asked Questions

Q: How much funding can you get from CASPP?
You can apply for up to $1 million per project. AAFC covers up to 50% of eligible costs. The rest must come from you or your partners, and only cash is accepted.

Q: What does “sector-wide impact” mean under CASPP?
Your project must benefit the Canadian agriculture or agri-food sector as a whole. This could mean sharing new practices, tools, or strategies across regions or commodities.

Q: Are for-profit organizations eligible for CASPP?
Usually, no. For-profit groups are only eligible if their project clearly helps the public or the broader sector, not just their own business.

Q: Is in-kind funding allowed as part of the cost share?
No. Only cash contributions are accepted for your share of the project costs.

Q: When is the CASPP application deadline?
There is no fixed deadline. Applications are accepted until March 31, 2028, or until all program funds are allocated.

Next Steps

CASPP funding is a valuable tool for advancing innovation and sustainability in Canadian agriculture, but it is not the only option. Many organizations combine CASPP with other federal, provincial, or sector-based grants. GrantHub makes it easy to search for agriculture and sustainability grants by province, sector, or project type, so you can build a funding plan that fits your needs.

See also:

• Loans vs Grants for Women in Agriculture: Key Differences Explained
• How to stack grants and loans without violating funding rules
• What Business Expenses Are Eligible Across Canadian Grants and Loans?