Dairy Farm Investment Program – 7. Frequently asked questions

7. Frequently asked questions

1. What is the Dairy Farm Investment Program?

The Dairy Farm Investment Program (DFIP) is a five-year (beginning fiscal year 2017-2018) $250-million program to help Canadian cow's milk producers improve productivity through upgrades to their equipment.

2. Will the $250 million for this program be spread out evenly over five years?

For the first year of the program that ends on March 31, 2018, the program budget is smaller considering that there are only 7 months left in the year to access program funding. For the remaining four years, funding is more evenly allocated.

3. What is the purpose of the program?

The program is one of two new programs announced on November 10, 2016, to support the productivity of the dairy sector, as it adapts to the anticipated impacts from the Comprehensive Economic and Trade Agreement (CETA) with the European Union.

4. Who is eligible for DFIP funding?

Eligible applicants are Canadian licensed cow's milk producers.

5. Is there a deadline for program applications?

Applications to the program will be accepted starting on August 22, 2017 at 10:00 a.m. (EDT). Applications will not be accepted prior to this date.

DFIP will determine funding on a first-come-first-served basis until all funding has been fully committed for the applicable application window. Multi-year proposals are accepted.

Please refer to section 2.8 of the Applicant Guide for details on application intake.

6. How many applications can I submit?

Applicants may apply more than once, and for more than one project, however the total maximum funding amount per license dairy farm, will not exceed $250,000 for the duration of the program.

Please note: priority may be given to first time applicants.

7. Can projects, activities and budgets be spanned over multiple years?

Project activities and costs may span over multiple years. However, the period for which projects may start and end will depend on the application window (Refer to section 2.8 of the Applicant Guide).

8. Is there a maximum funding limit for projects that will be considered?

A Small Investment Project is eligible for a maximum DFIP contribution (Agriculture and Agri-Food Canada support) of up to $60,000.

A Large Investment Project is eligible for a maximum DFIP contribution of up to $250,000.

9. Is there a maximum funding amount per applicant for the DFIP?

Yes. The maximum funding amount payable per licensed dairy farm, for the duration of the program, is $250,000.

10. Is matching funding required?

Eligible costs are to be shared 50:50 between Agriculture and Agri-Food Canada (AAFC) and the applicant.

When including funds from other government sources to meet the applicant's 50 percent share, the maximum level of total government funding shall not exceed 85 percent of eligible costs per project.

11. What types of costs are eligible?

Please refer to section 2.10 of the Applicant Guide.

12. Are costs incurred before an application is submitted eligible under the Program?

For projects submitted before March 31, 2018, the program offers producers flexibility to seek funding for eligible activities that started on or after November 10, 2016.

Please note: while the program allows for retroactive activities and costs to be submitted, the applicant assumes the risk of not being reimbursed should:

  • the project not be approved;
  • the costs are deemed ineligible, or
  • funding has been exhausted.

Please refer to the Applicant Guide for more details.

13. Is this a repayable contribution?

No – A successful recipient will not be required to reimburse AAFC for contributions received from DFIP.

14. Are there any ineligible costs?

Yes, costs for equipment outside the barn and barn extensions are ineligible. A list of example ineligible costs can be found in section 2.11 of the Applicant Guide.

15. What are the eligible activities?

Eligible activities include:

  • Hiring of external expertise (consultants) to assess how the dairy farm enterprise can improve efficiencies and productivity;
  • Purchasing, shipping, and installing eligible equipment (i.e. barn equipment, commercial-off-the-shelf software and IT infrastructure, please see Annex A of the Applicant Guide for a list of eligible equipment types);
  • Training necessary to operate eligible equipment; and
  • Retrofits of current facilities related to the installation and operation of eligible equipment.

Please refer to section 2.9 of the Applicant Guide for more details.

16. Why is used equipment ineligible?

The program seeks to help dairy farmers to modernize and increase their competitiveness through investments in new farm technologies and upgrades.

17. How is DFIP funding being allocated?

Complete application packages will be assessed on a first-come-first-served basis, until all funding has been fully committed for the current application intake window.

Each application will be assessed against the program's eligibility criteria.

Other considerations for applicants:

  • Based on the demand, the program will strive to support investments in all provinces – approximately in proportion to their share of the total milk quota
  • The program will aim to achieve a fair balance of funding distribution between small and large investment projects
  • First-time applicants may be prioritized
18. Will DFIP funding be allocated per province?

Yes. The DFIP funds will be notionally allocated in proportion to each province's share of the total milk quota, over the life of the program.

Unused funds allocated to a province in a given year could be re-allocated to another where demand exceeds funding availability.

19. What constitutes a complete application?

A complete application includes:

Note: For project costs included in the application, Applicants will need to attach a quote (for planned costs) or a receipt with proof of payment [for actual (already incurred and paid) costs]. Some exceptions apply; see section 2.10 of the Applicant Guide for more details.

20. How do I submit my application?

You can submit your application using one of the following options:

  1. Email: aafc.dfip-pifl.aac@canada.ca
  2. Mail:
    Agriculture and Agri-Food Canada c/o Dairy Farm Investment Program
    1341 Baseline Road
    Tower 7, 5th floor
    Ottawa, Ontario K1A 0C5
  3. Fax: 613-773-2121

Applications will not be accepted before August 22, 2017 at 10:00 a.m. (EDT).

21. Will an application be acknowledged?

Yes. Once an application has been submitted, an acknowledgment notice will be forwarded to the applicant.

22. How long will it take to review my application?

Our goal is to assess applications and send an approval or a rejection notification letter within 100 business days of receiving a complete application package.

For more information, please contact us toll-free at 1-877-246-4682 or by email at aafc.dfip-pifl.aac@canada.ca.

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