Canadian farmers are under pressure to cut emissions while keeping their businesses strong. The On-Farm Climate Action Fund (OFCAF) helps by covering part of the cost to adopt proven, climate-friendly farming practices. This program is part of Agriculture and Agri‑Food Canada’s Agricultural Climate Solutions initiative. It supports on-farm changes that lower greenhouse gas emissions and store more carbon in the soil.
The On-Farm Climate Action Fund is a federal program that helps farm operators use practical, sustainable farming practices. Farmers do not apply directly to the federal government. Instead, they apply through approved third-party delivery organizations like farm groups, non-profits, and commodity organizations. These groups manage intakes in their regions.
Key features of the program:
The federal program runs for several years, but application intakes open and close at the delivery-organization level, not across Canada all at once. This means timing and funding rules change by province and farm type.
The On-Farm Climate Action Fund supports a short list of high-impact practices backed by research. Delivery organizations may adjust eligible activities, but most funded projects fit into these main categories:
Funding can help pay for:
Cover crops improve soil health, reduce erosion, and increase carbon storage.
Support may be available for:
Better nitrogen management lowers nitrous oxide emissions and improves fertilizer use.
Eligible activities often include:
These systems build soil carbon and help pastures handle extreme weather.
Funding amounts vary by practice and delivery organization. There is no single national cap per farm published by AAFC. Farmers must check local guidelines for maximum contributions and cost-share rates.
Tools like GrantHub’s eligibility matcher can help you filter On-Farm Climate Action Fund intakes by province, practice type, and farm profile.
Eligibility is set by each delivery organization, but most programs share these common requirements:
Some delivery organizations may give preference to:
Always review the intake guide from the delivery organization before applying.
OFCAF does not use a single national application portal.
Typical steps:
Most programs use a cost-share system. You pay upfront and receive reimbursement after showing proof of approved expenses.
Q: Is the On-Farm Climate Action Fund currently open?
Intakes are managed by regional delivery organizations, not federally. Some regions may be open while others are closed.
Q: How much funding can I receive from OFCAF?
There is no single national funding amount per farm. Maximum contributions depend on the practice, region, and delivery organization rules.
Q: Can I apply directly to Agriculture and Agri‑Food Canada?
No. Farmers must apply through an approved third-party delivery organization.
Q: Is On-Farm Climate Action Fund funding taxable?
Government grants are generally considered taxable income. You should confirm treatment with your accountant based on your farm structure.
Q: Can I stack OFCAF with other agriculture grants?
Stacking may be allowed, but total government funding cannot exceed eligible project costs. Rules vary by program.
GrantHub tracks active On-Farm Climate Action Fund intakes and other agriculture grants across Canada—see which ones match your farm profile.
The On-Farm Climate Action Fund is a practical way to reduce emissions and strengthen your farm. Because funding is regional and time-limited, finding the right intake at the right time is important. GrantHub helps you keep up with active sustainable farming grants so you can plan projects with confidence.
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