Western provinces boost agri-business with new incentives

Saskatchewan’s value-added Agricultural Incentive is a non-refundable tax credit, applicable to capital expenditures exceeding $10 million, targeting new or expanded agricultural facilities. The primary aim? Add more value to the agricultural sector. Companies can leverage this incentive against their corporate income tax over a span of three to ten years. Interestingly, this doesn’t hinder the ability to claim other Saskatchewan-offered incentives.

The criteria for qualifying projects are clear. Projects must involve a capital outlay of $10 million, exhibit a genuine intention to boost productive capacity, and align with the program’s definition of value-added agriculture. A certified third-party must vouch for the increase in productive capacity.

Manitoba Sustainable Canadian Agricultural Partnership is a non-repayable, cost-shared funding tool, which is accessible to value-added food processing businesses, aiding in purchasing processing equipment. The grant range is impressive, with anywhere between $50,000 to $2.5 million up for grabs based on project size.

The province has also introduced four funding streams to assist the agri-processing sector, focusing on enhancing productivity, efficiency, and profitability. Whether it’s capital asset expansion, enterprise resource planning software, quality control capacity building, or supporting co-packing services for scaling food businesses, the Manitoba program will cover it.

There is also a Sustainable CAP market development program aimed at improving interprovincial trade and export capacity, it funds up to 50% of eligible expenses, with a cap at $30,000. The initiative seeks to launch new products, overcome non-tariff barriers, and open up domestic and international markets.

Related articles