Program directory · Agriculture and Agri-Food Canada
Loan Guarantee Programs
- Department
- Agriculture and Agri-Food Canada
- Program code
- BWP06 (AGR)
- Core responsibility
- Sector Risk
- In Departmental Plans
- 2018-19 – 2026-27 · New since an earlier plan
What it does
Loan Guarantee Programs consist of three programs which provide financial guarantees to Canadian producers, marketing agencies and agricultural co-operatives. The Advance Payments Program provides producers with access to credit through cash advances based on the value of their agricultural products. This enables producers to meet financial obligations and allows them to make the decision to sell agricultural products based on market conditions rather than the need for cash flow. The Price Pooling Program provides cooperative marketing agencies with a price guarantee on eligible products as a form of security against unanticipated declines in the market price for their products. This helps them to secure financing to issue initial payments to their producer members as they deliver product to the cooperative marketing pools. The Canadian Agricultural Loans Act Program guarantees the repayment of loans made to producers and agricultural cooperatives by financial institutions. Producers use these loans to establish, improve, and develop their farms, while agricultural co-operatives use loans to process, distribute, or market agricultural products.
Source: the department's Program Inventory, via GC InfoBase.
History and lineage
First appears in GC InfoBase's actual spending by program in 2018-19. The data does not record when a program was created; it may be older than its first appearance here, which is limited by the sources (program spending starts in 2010-11, Departmental Plans in 2018-19).
| Program | Relation | Years with data | Actual spending over those years |
|---|---|---|---|
| Loan Guarantee Programs | This program | 2018-19 – 2028-29 | $519M |
No earlier or later program in the same department has a similar name.
Significant changes in scope and budget
Detected from the data: renames between plans, programs it appears to replace, merge with or split into (matched by name), year-over-year changes in spending of at least 25% and $5M, or in employees of at least 20% and 25 FTEs, linked budget measures, and results indicators added or dropped.
| Year | What changed | Source |
|---|---|---|
| 2019-20 | Indicators added: Dollar value of CALA loans registered to established and beginning farmers per fiscal year ($millions); Number of days between delivery of product(s) to pool and producer receiving payment | Departmental Results Framework (GC InfoBase) |
| 2019-20 | Spending $69.1M, against $41.4M in 2018-19 (+67%). | Actual spending (GC InfoBase) |
| 2020-21 | Spending $30.3M, against $69.1M in 2019-20 (−56%). | Actual spending (GC InfoBase) |
| 2022-23 | Spending $64.6M, against $36.1M in 2021-22 (+79%). | Actual spending (GC InfoBase) |
| 2023-24 | Spending $149M, against $64.6M in 2022-23 (+130%). | Actual spending (GC InfoBase) |
| 2025-26 | Planned spending $190M, against $128M in 2024-25 (+48%). | Latest Departmental Plan |
Success criteria
The program's indicators from its department's Departmental Results Framework: the target set in each year's plan, and the result reported the following year. Source: GC InfoBase.
Historical: targets against results
Bars: result reported. Dashed line: target.
| Report year | Target | Due | Result | Status |
|---|---|---|---|---|
| 2019-20 | ≥ 1.76 | 2020 | 3.03 Advances were significantly higher in 2019 relative to 2018 due to the increase in the overall APP advance limit from $400,000 to $1 million and the increase to the interest-free portion from $100,000 to $500,000 per program year for advances on 2019 canola crops. The minimum numeric target has been changed from 1.76 to 1.98. | Met |
| 2020-21 | ≥ 1.76 | 2020 | 2.61 | Met |
| 2021-22 | ≥ 1.76 | 2021 | 2.39 | Met |
| 2022-23 | ≥ 1.76 | 2021 | 3.53 | Met |
| 2023-24 | ≥ 2.27 | 2024 | 4.52 | Met |
| 2024-25 | ≥ 2.27 | 2025 | 4.24 | Met |
Bars: result reported. Dashed line: target.
| Report year | Target | Due | Result | Status |
|---|---|---|---|---|
| 2019-20 | ≥ 77.4 | 2020 | 73.1 Program participation from year-to-year can be affected by factors such as interest rates, how financial institutions utilize the program, and the state of the industry. | Not met |
| 2020-21 | ≥ 77.4 | 2021 | 68.09 The decrease in Canadian Agricultural Loans Act uptake can be attributed to a number of factors including: Low loan limits in comparison to other provincial/federal loan guarantee programs that have not kept pace with the rising cost of farmer capital costs; increased lender comfort level with risk of issuing agricultural loans outside of the CALA program; and existing market variables, such as p… | Not met |
| 2021-22 | ≥ 77.4 | 2022 | 51.52 The decrease in Canadian Agricultural Loans Act (CALA) uptake can be attributed to a number of factors including: Low loan limits in comparison to other provincial/federal loan guarantee programs that have not kept pace with the rising cost of farmer capital costs; increased lender comfort level with risk of issuing agricultural loans outside of the CALA program; and existing market variables, su… | Not met |
| 2022-23 | ≥ 77.4 | 2023 | 39.8 The decrease in Canadian Agricultural Loans Act uptake can be attributed to a number of factors including: Low loan limits in comparison to other provincial/federal loan guarantee programs that have not kept pace with the rising cost of inputs, loan interest, farmer capital costs; increased lender comfort level with risk of issuing agricultural loans outside of the CALA program; and existing mark… | Not met |
| 2023-24 | ≥ 67.58 | 2024 | 39.1 The decrease in the Canadian Agricultural Loans Act Program uptake can be attributed to several factors including an abundance of available credit, low loan limits diminishing the utility and uptake for farmers due to increasing farm capital values, current design limitations such as shorter repayment terms, and low awareness of the program amongst lenders. | Not met |
| 2024-25 | ≥ 67.58 | 2025 | 27.2 The decreased uptake in the Canadian Agricultural Loans Act Program is attributed to several factors, including low awareness of the program amongst lenders and producers and an abundance of available credit options. CALA's low program loan limits and short repayment terms also diminish the program’s utility for farmers facing increasing farm capital values and cashflow pressures. | Not met |
Bars: result reported. Dashed line: target.
| Report year | Target | Due | Result | Status |
|---|---|---|---|---|
| 2019-20 | ≤ 30 | 2020 | 11 | Met |
| 2020-21 | ≤ 30 | 2021 | 7 | Met |
| 2021-22 | ≤ 30 | 2022 | 16 | Met |
| 2022-23 | ≤ 30 | 2023 | 13.58 | Met |
| 2023-24 | ≤ 30 | 2024 | 12.5 | Met |
| 2024-25 | ≤ 30 | 2025 | 18 | Met |
Current: the 2026-27 plan's targets
Bars: result reported. Dashed line: target.
| Report year | Target | Due | Result | Status |
|---|---|---|---|---|
| 2026-27 | ≥ 3.08 | 2027 | — | Planned |
Bars: result reported. Dashed line: target.
| Report year | Target | Due | Result | Status |
|---|---|---|---|---|
| 2026-27 | ≥ 40.63 | 2027 | — | Planned |
Bars: result reported. Dashed line: target.
| Report year | Target | Due | Result | Status |
|---|---|---|---|---|
| 2026-27 | ≤ 30 | 2027 | — | Planned |
Future goals: targets due after 2026-27
No targets with a later due date.
Spending and employees: planned against actual
Spending
Show the numbers
| Fiscal year | Planned | Actual |
|---|---|---|
| 2018-19 | $86.7M | $41.4M |
| 2019-20 | $86.7M | $69.1M |
| 2020-21 | $111M | $30.3M |
| 2021-22 | $126M | $36.1M |
| 2022-23 | $130M | $64.6M |
| 2023-24 | $134M | $149M |
| 2024-25 | $137M | $128M |
| 2025-26 | $190M | — |
| 2026-27 | $169M | — |
| 2027-28 | $134M* | — |
| 2028-29 | $134M* | — |
Employees (FTEs)
Show the numbers
| Fiscal year | Planned | Actual |
|---|---|---|
| 2018-19 | 32 | 33 |
| 2019-20 | 34 | 30 |
| 2020-21 | 31 | 27 |
| 2021-22 | 29 | 30 |
| 2022-23 | 31 | 34 |
| 2023-24 | 34 | 31 |
| 2024-25 | 30 | 33 |
| 2025-26 | 33 | — |
| 2026-27 | 32 | — |
| 2027-28 | 32* | — |
| 2028-29 | 32* | — |
Planned spending, plan by plan
Each row is one year's Departmental Plan and its forecast for the next three fiscal years; read a column down to see how the forecast for one year changed. The last row is what was actually spent. Click an amount for its source. Biggest changes in federal spending plans
| Plan | 2018-19 | 2019-20 | 2020-21 | 2021-22 | 2022-23 | 2023-24 | 2024-25 | 2025-26 | 2026-27 | 2027-28 | 2028-29 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 2018-19 plan | $86,710,578 | $86,701,878 | $86,701,878 | ||||||||
| 2019-20 plan | $86,694,925 | $86,712,452 | $86,712,452 | ||||||||
| 2020-21 plan | $111,319,160 | $125,852,456 | $130,061,977 | ||||||||
| 2021-22 plan | $125,883,973 | $130,093,494 | $134,393,494 | ||||||||
| 2022-23 plan | $130,055,740 | $134,355,740 | $133,355,740 | ||||||||
| 2023-24 plan | $134,378,737 | $133,378,737 | $133,378,737 | ||||||||
| 2024-25 plan | $136,685,348 | $133,356,483 | $133,232,580 | ||||||||
| 2025-26 plan | $190,113,633 | $148,461,734 | $133,288,769 | ||||||||
| 2026-27 plan | $168,597,209 | $133,914,233 | $133,914,233 | ||||||||
| Actual | $41,352,092 | $69,050,511 | $30,256,230 | $36,099,118 | $64,590,849 | $148,775,613 | $128,385,471 |
Actual spending is from Departmental Results Reports and the Public Accounts, as published in GC InfoBase. FTEs are full-time equivalents.
