How to claim relocation costs when hiring youth in agriculture

How to claim relocation costs when hiring youth in agriculture

Finding local labour is a real challenge for many Canadian farms and agri-food businesses. The Youth Employment and Skills Program (YESP) helps by covering part of a youth employee’s wages and reimbursing eligible relocation costs when you hire young workers from outside your region. If you plan to bring in youth from another community or province, understanding how to claim relocation costs can help lower your labour costs.

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How relocation cost claims work under the Youth Employment and Skills Program

The Youth Employment and Skills Program is a federal wage subsidy delivered by Agriculture and Agri-Food Canada. It supports agricultural producers and food processors who hire youth for on-farm or agri-food work.

Key funding details you need to know

Under YESP, eligible employers can receive:

• Up to 50% of eligible wage costs, to a maximum of $14,000 per youth employee
• Up to $5,000 per youth employee for eligible relocation costs
• Higher cost-share limits may apply if you hire youth facing barriers or if you are an Indigenous individual or organization
• Government funding can be stacked, but total public funding cannot exceed 100% of project costs

Who can claim relocation costs?

You may be able to claim relocation costs if:

• You are an agricultural producer or agri-food processor in Canada
• You hire a youth employee (typically aged 15–30) under the program
• The youth must relocate to take the job, usually because the worksite is outside their normal commuting area

Relocation funding is tied to an approved YESP application. Costs must be connected directly to the youth employee you hired under the program.

What counts as eligible relocation costs?

While exact eligibility is confirmed during application and assessment, relocation costs under YESP commonly include:

• Temporary accommodation near the worksite
• Travel costs to move the youth to the job location
• Basic moving expenses related to starting the position

Only reasonable and necessary expenses are eligible. You must be able to show that the costs were required for the youth to accept and start the job.

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Eligibility and requirements

To qualify for relocation funding under YESP, make sure:

• Your business is an eligible agricultural producer or processor
• The youth employee meets the age and residency requirements
• The position is approved under YESP, and relocation is needed for the youth to take the job

You must outline the need for relocation support in your application and provide estimates for expected costs. The program may request additional information to confirm eligibility before approving your claim.

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How to claim relocation costs step by step

1. Apply to YESP before the youth starts work
   Your application should clearly state that relocation support is required and estimate the costs.

2. Hire the youth and incur the relocation expenses
   Keep all receipts, invoices, and proof of payment. Missing documentation can delay or reduce reimbursement.

3. Track costs separately
   Record relocation expenses apart from wages. This makes reporting and verification easier.

4. Submit claims and reports as required
   YESP requires employers to submit claims showing actual expenses paid, not estimates.

If you need help checking your eligibility or comparing youth employment programs, GrantHub’s eligibility matcher provides useful information for Canadian farmers and agri-food employers.

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Common mistakes to avoid

• Claiming relocation costs that were not pre-approved
  Expenses must align with what was outlined in your application. New or unexpected costs may be rejected.

• Missing receipts or proof of payment
  Verbal agreements or estimates are not enough. Documentation is required for reimbursement.

• Assuming all housing costs are covered
  Only reasonable, short-term accommodation tied to employment is typically eligible, not long-term rent.

• Exceeding funding limits through stacking
  If you combine YESP with other grants, total public funding cannot exceed 100% of your project costs.

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Frequently Asked Questions

Q: How much can I claim for relocation costs per youth employee?
You can claim up to $5,000 per youth employee for eligible relocation expenses under YESP. This amount is separate from the wage subsidy.

Q: Do relocation costs get paid upfront or reimbursed later?
Relocation costs are typically reimbursed after you incur and report them. You must pay the expenses first and then submit a claim with documentation.

Q: Are relocation costs available for local youth hires?
No. Relocation funding is intended for youth who must move or travel a significant distance to take the job. Local commuting costs are usually not eligible.

Q: Can Indigenous employers receive more relocation funding?
Indigenous individuals and organizations may be eligible for higher cost-share support, depending on the project and youth hired.

Q: Is the Youth Employment and Skills Program repayable?
YESP is non-repayable funding. You do not have to pay back the wage subsidy or relocation support if you follow program rules.

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Next steps

If you are hiring youth from outside your community, relocation funding can help lower your labour costs. GrantHub features youth employment and agriculture grant programs from across Canada so you can see which ones fit your business profile. You may also want to explore related guides like Federal Youth Funding Programs: Eligibility for Youth-Led Projects and Exchanges or Is Your Agriculture or Agri-Food Project a Strategic Priority? to plan your next hire with confidence.