Backgrounder -  Agricultural Climate Solutions – On-Farm Climate Action Fund


The $200 million On-Farm Climate Action Fund (2021-2024) is one of the many important new initiatives being undertaken to promote environmental sustainability and economic resiliency in the agriculture sector.

Climate change is expected to compound many of the environmental challenges and risks associated with agricultural production, affecting including water quantity and quality, soil health, and biodiversity. Canada’s Changing Climate Report indicates that warming in Canada is approximately double the global average and even higher in Canada’s northern regions.

Taking immediate action against climate change is key to exceeding Canada’s 2030 emission reductions target, and setting the foundation for a net-zero emissions economy by 2050. The benefits of these actions to Canada’s economy and environment are clear, and producers are key partners in implementing climate solutions.

The On-Farm Climate Action Fund will support producers in adopting beneficial management practices (BMPs) that reduce greenhouse gases (GHGs) and store carbon, specifically nitrogen management, cover cropping, and rotational grazing practices. These practices also provide other environmental benefits such as improved biodiversity and soil health.

Many producers have already begun implementing these and other BMPs. The Fund will address barriers to wider adoption, including up-front implementation costs, lack of risk protection, minimal or delayed returns on investment and limited availability of information and agronomic services.

The Fund will be distributed through delivery partners. Recipient organizations will propose ways in which that funding can be delivered, based on their experience with participating producers.

Activities eligible for funding include:

  • Nitrogen management: agronomic services to develop farm-specific nutrient management plans, equipment modifications for fertilizer application in fields, and soil sampling and analysis.
  • Cover cropping: payment-per-acre to cover adoption or related costs such as seeds and equipment.
  • Rotational gazing: agronomic services to develop grazing management plans, interior cross fencing, water system infrastructure, legume and forage seeds.

Other activities to support BMP adoption, like outreach, education, and training, will also be considered.

The Fund is part of the Government of Canada’s Agricultural Climate Solutions initiative under the Natural Climate Solutions Fund (NCSF). The NCSF is implemented by Natural Resources Canada, Environment and Climate Change Canada, and Agriculture and Agri-Food Canada.

To request the call for proposals form, please email The application process will run until September 26, 2021.

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Oliver Anderson
Director of Communications
Office of the Minister of Agriculture and Agri-Food

Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
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