How to fund perennial crop equipment, cold storage, and expansion in PEI

By GrantHub Research Team · · Lire en français

How to fund perennial crop equipment, cold storage, and expansion in PEI

Perennial crop growers in Prince Edward Island often face a big challenge. Equipment, cold storage, and processing upgrades cost much more than annual inputs. At the same time, cash flow does not always keep up with the long wait for returns. The PEI Perennial Crop Enhancement Program helps by covering up to half of eligible project costs for storage, processing, and capital equipment.

This guide explains how to fund perennial crop equipment, cold storage, and expansion in PEI using provincial programs, what costs qualify, and how to avoid common application mistakes.


Provincial funding programs for perennial crop investments in PEI

Perennial Crop Enhancement Program (PEI)

This is the main program for equipment, cold storage, and infrastructure upgrades for perennial crops in PEI.

What the program funds

  • Storage and processing technology for perennial crops
  • Harvesting and packaging equipment
  • Capital equipment purchases
  • Upgrades or changes to existing buildings for perennial crop cold storage

How much funding you can get

  • Up to $50,000 per project
  • Covers a maximum of 50% of eligible project costs
  • Funding is repayable

Who is eligible

  • Agricultural producers with at least $20,000 in CRA-reported gross farm sales
  • Small and medium-sized agri-businesses
  • Mi’kmaq First Nations and other Indigenous groups
  • Agricultural co-operatives, clubs, and industry associations
  • Producers enrolled in Future Farmer Program 2.0 with a business plan for perennial crop production

This program works well for orchards, vineyards, berry farms, and other perennial crop operations planning to improve efficiency or reach new markets through better storage and processing.


Perennial Crop Establishment Program (PEI)

If your project includes planting new crops or expanding acreage along with equipment purchases, this companion program may be right for you.

What the program funds

  • Establishment and expansion of perennial crops
  • Production technology to reduce costs or improve quality
  • Equipment or systems that add value or open new markets

Funding details

  • Up to $20,000 per project
  • Covers up to 50% of eligible costs
  • Funding is repayable

Many PEI growers combine establishment funding with efficiency upgrades for long-term growth. GrantHub’s eligibility matcher can help you quickly filter PEI programs by crop type, project cost, and growth stage.


What costs and projects are eligible?

Understanding which expenses qualify is key to a strong application.

Eligible costs include:

  • New and used equipment for perennial crop production, harvesting, and storage
  • Cold storage units and upgrades to existing buildings
  • Processing and packaging technology
  • Site preparation and installation costs
  • Consulting and engineering fees related to storage or processing upgrades

Ineligible costs often include:

  • Routine maintenance
  • Used equipment without proof of fair market value
  • Expenses paid before written approval
  • Items not directly tied to perennial crop production

Check the official program guidelines or use GrantHub’s program summaries to make sure your costs are eligible.


What makes a strong perennial crop funding application?

Projects that score well under the Perennial Crop Enhancement Program usually have three things in common:

  • Clear efficiency gains
    For example, less spoilage from cold storage, labour savings from new harvesting equipment, or faster processing times.

  • Better market access
    Cold storage that allows off-season sales or packaging equipment that meets buyer standards makes your application stronger.

  • Well-defined budgets and timelines
    PEI programs expect clear quotes, cost breakdowns, and a realistic project schedule.

Funding is not automatic. Applications are judged on how much the investment improves productivity, quality, or profitability in the perennial crop sector.


Common mistakes to avoid

  1. Starting the project before approval
    Expenses before written approval are often not eligible. Wait for confirmation.

  2. Not having enough matching funds
    You must cover at least 50% of project costs. Applications without proof of financing are weak.

  3. Vague project descriptions
    “New cold storage” is not enough. Explain the size, capacity, and how it will help your operation.

  4. Missing revenue records
    You need to show at least $20,000 in gross farm sales reported to CRA. Missing records can delay or stop your application.


Frequently Asked Questions

Q: Is the Perennial Crop Enhancement Program a grant or a loan?
The funding is repayable, so it works more like a loan than a non-repayable grant. Repayment terms are set by the province.

Q: Can I upgrade an existing building for cold storage?
Yes. The program supports changes or upgrades to existing buildings for perennial crop cold storage, not just new construction.

Q: Are Indigenous growers in PEI eligible?
Yes. Mi’kmaq First Nations and other Indigenous groups are eligible to apply.

Q: Do I need to be a large farm to apply?
No. Small and medium-sized agri-businesses can apply if they meet the minimum revenue and other program requirements.

Q: Can co-operatives apply for perennial crop funding?
Yes. Agricultural co-ops, clubs, and industry associations may apply if the project supports eligible perennial crop activities.


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