Canadian Agricultural Strategic Priorities Program

2. You — a minimum of 50%

AAFC may contribute up to 75% of total project costs where it deems that a project is a high priority for a sector or addresses a public safety concern of Canadians and clearly demonstrates the benefits to Canadians through significant levels of support (public and private interests). In exceptional cases, AAFC may contribute greater than 75%.

Your portion of the cost-share must be cash contributions.note 1 In-kind contributions are ineligible.

Total government funding (inclusive of federal departments, agencies and Crown corporations, provincial/territorial, and municipal governments) cannot exceed 85% of total project funding.

In such cases, contributions may be repayable or non-repayable depending on the distribution of benefits.

1. Projects where advantages primarily accrue to the individual business, such as improvements that enhance internal operations or competitiveness, would generally be structured as repayable.
2. Projects whose benefits extend to an entire sector, subsector, or to Canadian agriculture as a whole may be supported through non-repayable contributions.

Your project(s) should focus upon one or more of the following program priorities:

Strategic development and capacity building

Eligible activities include:

1. Plan and carry out strategic initiatives that align with Canadian agriculture and agri-food sector tables or forums to address shared challenges and opportunities.
2. Build the ability of organizations and the sector to respond to changes in markets, trade, and consumer needs.
3. Support projects that modernize how organizations are run and how they deliver services.
4. Create ways for stakeholders to work together across the Canadian agriculture or agri-food value chain to boost innovation, competitiveness, and impact.
5. Develop skills, leadership, and tools to help organizations manage change and grow.
6. Provide training, mentoring, workshops, or presentations when they support project goals or share results.
7. Share key project results with the Canadian agriculture and agri-food sector through targeted activities (does not include hosting conferences or travel for members).

Adaptation to new technology

Eligible activities include:

1. Develop coordinated approaches to help sectors prepare for and use new opportunities.
2. Build digital tools and platforms to improve connection and efficiency across the sector.
3. Use artificial intelligence and other advanced technologies to improve operations and decision-making.
4. Design and test new approaches that help sectors adopt modern technology.
5. Create new products and services using technology.
6. Work with innovators and AAFC researchers to test and adopt new technologies.
7. Provide training, mentoring, workshops, or presentations to test, show, or share project results.

Environmental sustainability

Eligible activities include:

1. Develop and carry out projects that reduce environmental impact and improve resilience using new technologies.
2. Show and adopt sustainable practices that improve efficiency, lower emissions, and protect natural resources.
3. Help the sector adapt to climate change while staying competitive.
4. Support and align with broader sustainability programs and federal priorities, including the Sustainable Canadian Agricultural Partnership.
5. Test or scale technologies that help meet environmental and market expectations.
6. Provide training, mentoring, workshops, or presentations to test, show, or share project results.

Eligible costs are project expenses, claimed or contributed, that fall within the set program cost categories and respect all program limitations. To be considered eligible, costs must:

1. be non-organizational and directly linked to project results, such as hiring expert consultants or testing technologies to show solutions to sector challenges
2. be included in the project application form budget
3. be related to the activities included in the work plan
4. be incurred within the work plan activities timeframe

Note:

Costs you incur before AAFC approval or the project start date may not be reimbursed by AAFC, and you may be solely responsible for those expenditures.

For more information and details on cost categories, eligible costs, limitations or instructions, refer to Eligible costs (Complete the application and apply).

This annex details eligible costs and limitations under this program. Use the following information to complete your project budget during the application stage. AAFC may periodically change the requirements outlined in this annex.

AAFC will only fund project-related expenditures that are pertinent, reasonable and essential to accomplish the objectives of an approved project and that fall under the following cost categories:

Administrative costs

Administrative costs – Eligible cost items

Administrative costs are defined as the organization's expenses (such as fundamental operational costs) not directly related to undertaking the project activities but necessary for the organization to manage activities outlined in the work plan and to administer the reporting requirements of the contribution agreement, including project management costs.

Administrative fees will be calculated at a 10% flat rate and will be subject to the cost-sharing ratio. Should your organization wish a lesser administration flat rate, please contact your CASPP Program Officer to discuss options. Under the administration flat rate approach, administrative cost items do not need to be detailed, negotiated or substantiated when submitting a claim. However, if subject to a compliance audit, the recipient may be asked to supply supporting documentation. For this purpose, it is important to keep in the mind the following examples.

Administrative costs include, but are not limited to the costs related to:

1. project management costs: management and administrative staff wages not working on the outcome of projects, including those who negotiate service contracts, pay the invoices, manage the project budget, monitor and/or prepare the claims and any financial or progress/performance reports for the project

• salaries, Mandatory Employment Related Costs (MERCs), and benefits and/or contract services

2. administrative office supplies and expenses

• basic telephone fees (including fax lines) and cell phones
• hydro
• materials and office supplies (for example, pens, pencils, paper, envelopes, cleaning supplies, subscriptions)
• monthly internet fees
• postage and courier fees
• office equipment (for example, computers, printers, photocopiers)
• office space (rent) and related utilities and maintenance

3. administrative information technology (IT) products and services, including maintenance
4. other overhead type expenditures relating to the organization's office

Administrative costs — Limitations/Explanations

1. Don't include administration costs in your application; the 10% flat rate will be calculated automatically. This flat rate has been developed to represent the cost of undertaking the administration functions of the contribution agreement.
2. You may also choose to not claim administrative costs, and opt out of the flat rate.
3. To ease administrative burden, these costs do not need to be detailed at the time of application and will not be negotiated or need to be validated when submitting a claim.
4. These costs will be funded at the approved program cost-share ratio and will be calculated as part of the financial reports.
5. Individual capital expenditures over $100,000 are not eligible for administrative costs and are excluded from the 10% flat rate calculation.

Note:

You must keep all documentation of these costs. If you're subject to an audit, you'll need to supply the supporting documents at that time.

Salaries and benefits

Salaries and benefits — Eligible cost items

Salaries and benefits paid to or on behalf of staff to execute activities outlined in the project work plan, other than those covered under Administrative costs. The salaries and benefits costs do not include completing financial or performance reports for the project.

1. Includes Mandatory Employment Related Costs (MERCs), Employment Insurance (EI), Canada Pension Plan (CPP), Quebec Pension Plan (QPP), vacation pay and benefits
2. Benefits mean payments an employer is required to make by virtue of company policy or a collective agreement such as contributions to a group pension plan

Salaries and benefits — Limitations/Explanations

1. Salaries and benefits must be additional to existing costs
2. Costs must be substantiated through supporting documentation, such as timesheets
3. Timesheets must be maintained for employees who work less than 100% of their time on the project. If your application is successful, you should expect to complete timesheets for employees working on the project.
4. Timesheets will not be required for people under contract
5. For further clarification, salary and benefit costs do not include incentive amounts such as performance pay (for example, bonuses), or discretionary employee benefits (such as a gym membership or parking allowance)
6. Severances are not eligible
7. Benefit costs must not exceed 25% of the eligible salary costs for each employee who works on the project
8. Other restrictions may apply

Contracted services

Contracted services — Eligible cost items

Professional or specialized services for which a contract is entered into, such as:

1. consultant/expert services
2. translation services
3. project management to undertake activities

Contracted services — Limitations/Explanations

1. All services with a contractor should be established under a contract, which should include payment terms and deliverables (such as: description, due dates, detailed budgets)
2. Recipients must use a fair and competitive or otherwise justifiable and generally accepted sound business process that results in competent and qualified contractors working on the project
3. Materials developed for activities carried out in a domestic establishment in Canada must be available in French and English
4. Overhead costs cannot exceed 15% of total other eligible costs invoiced
5. Contractor invoices must contain sufficient details to establish the nature of the expenses and alignment with the contract signed
6. Contracts for project management and administration services (other than to undertake project activities) may be used, however, these costs will be considered Administrative costs (included in the 10% flat rate and not eligible for additional reimbursement)
7. Down payments or advance payments due to contractual obligations may be reported in the period in which the funds are disbursed

Travel

Travel — Eligible cost items

Travel costs directly related to the project, such as:

1. per diems (accommodations, meals, incidentals and taxis)
2. transportation, such as economy airfare, rail and ground transportation

• Seat selection and baggage costs, excluding upgrades, are eligible

Travel — Limitations/Explanations

1. Travel expenditure estimates are required to be included in the project budget and must be pre-approved by AAFC at the time of application, regardless of how it is cost-shared between AAFC and other sources.

• Note: you must request prior approval for contractor or consultant travel