Canadian licensed producers (LPs) and processors are now eligible for funding through the recently launched 3.5 billion CAD Sustainable Canadian Agricultural Partnership (CAP) program. This program was an initiative released by Agriculture and Agri-Food Canada in an effort to strengthen the competitiveness, innovation and resiliency of the agriculture industry.
This new opportunity for funding is a positive development for LPs and processors. It represents a significant step towards supporting the innovation and resilience of this sector, which has faced challenges like wholesale pricing decline, intense competition, price stickiness, and limited financial support from private-sector lenders. Through this new program, LPs can benefit from various business risk management programs that provide agricultural producers with protection against income and production loss, and help manage risks that threaten the viability of their farms. These programs include:
AgriStability – provides support when producers experience a large decline in margin.
AgriInsurance – offers cost-shared insurance against natural hazards to reduce the financial impact of production or asset losses.
AgriInvest – provides cash flow to help producers manage income declines.
AgriRecovery – a disaster relief framework to help producers recover from natural disasters.
This program was released on April 1, 2023, and will run until March 31, 2028. It is an addition to other existing sources of federal funding that Cannabis companies have already been utilizing such as the Industrial Research Assistance Program (IRAP), National Research Council Canada (NRC), and the Scientific Research and Experimental Development (SR&ED). The Canadian Cannabis Exchange (CCX) looks forward to witnessing the positive impact Sustainable CAP will have on our members and the broader cannabis community.