Canadian Agricultural Adaptation Program (2014-2019) — Applicant Guide
July 2015 (Version 2)
The purpose of this document is to provide you, the Applicant, with information about the Canadian Agricultural Adaptation Program (CAAP) (2014–2019). In addition, this guide will assist you in completing and applying for funding under this program.
CAAP (2014-2019) is a five year $50.3 million program. Its objective is to help the agriculture, agri-food, and agri-based products sector seize opportunities, respond to new and/or emerging issues, and pathfind and/or pilot solutions to new and ongoing issues, so it can adapt and remain competitive. This program succeeds the CAAP program that ended in March 2014.
CAAP (2014-2019) aims to fund industry-led projects that address the program objective and are in line with national or sector-wide priorities identified by industry and/or government.
The objective of CAAP (2014-2019) is to help the agriculture, agri-food, and agri-based products sector do the following:
- Seize opportunities:
- Allow industry to take advantage of a situation or circumstance to develop a new idea, product, niche, or market opportunity.
- Respond to new and/or emerging issues:
- Address issues that were unknown or not a concern before.
- Pathfind and/or pilot solutions to new and ongoing issues:
- Pathfinding means investigating new ways and/or different options of dealing with new and/or ongoing issues.
- Piloting means testing ideas and/or approaches to apply in the sector.
Scope of Projects
National or sector-wide projects will be considered for funding. To show this scope, applicants must make sure that the project:
- Involves or is supported by groups or individuals that represent the targeted sector (national or sector-wide); and,
- Ultimately benefits the stakeholders of the targeted sector.
CAAP (2014-2019) ends on March 31, 2019.
2.2 Eligible Applicants
Eligible Applicants must be legal entities capable of entering into legally binding agreements.
Eligible Applicants are:
- Not-for-profit organizations and associations, including cooperatives
- Marketing boards
- Aboriginal groups
Ineligible Applicants are:
- For-profit organizations
- Federal, provincial, territorial and municipal governments and/or agencies
- Academic institutions; colleges and/or universities
2.3 Maximum Funding Amount
Agriculture and Agri-Food Canada (AAFC) will determine funding on a case-by-case basis.
The maximum funding amount for each project will generally not exceed:
- $1 million
An Applicant can apply more than once but, generally speaking, for each Applicant, funding will not be more than:
- $4 million (over 5 years)
2.4 Cost Sharing
Eligible costs related to a project, as defined in Section 2.7 Eligible Costs, are to be shared between AAFC and the successful Applicant (and others where relevant, for example other industry supporters and other governments).
For CAAP (2014–2019), eligible project costs are to be shared 50:50 between AAFC and the Applicant. Applicants may include funds from their own organization and/or its members; industry supporters and/or project participants; and other government sources (federal, provincial/territorial, municipal, and so on) to make up their 50% share of costs.
When including funds from other government sources to meet the Applicant's 50% share, the stacking limit must be respected. The stacking limit refers to the maximum level of total Canadian government funding (federal, provincial/territorial, and municipal) a successful Applicant can receive towards the total eligible costs of a project.
The maximum level of total government funding will generally not exceed 85% of eligible costs per project.
Note: AAFC reserves the right to contribute more than 50% of total project costs where it deems that a project is a high priority or will address an urgent issue.
2.4.1 Cash Contributions
When eligible costs are resourced by an approved cash outlay, they would either be eligible for reimbursement by AAFC or be part of the Applicant's contribution to the project.
For example, if a project requires specific human resources to undertake direct project activities and an Applicant devotes existing staff with the required skills to meet that requirement, then the cost of those resources is considered a cash outlay. These labour costs would either be considered eligible for reimbursement by AAFC or be part of the Applicant's cash contribution to the project.
2.4.2 In-kind Contributions
In-kind contributions are goods and services that are contributed to a project and that require no outlay of cash by the Applicant or industry supporter. In-kind contributions form part of the Applicant's project share and therefore are not reimbursable by AAFC.
To be eligible, in-kind contributions:
- Must be essential to the project's success;
- Are resources that would, if not provided, have to be purchased or contracted by the Applicant or industry supporters;
- Reflect fair valueFootnote 1 and be substantiated by the Applicant in their application, and be confirmed by AAFC during the project assessment process and throughout the project lifecycle; and
- Will not normally exceed 10% of the total eligible costs to complete the project.
2.5 Application Intake
Applications are accepted on a continuous basis. This means that applications can be submitted for consideration at any point during the life of CAAP (2014-2019), until the available budget has been fully allocated.
It is highly recommended that your application be submitted well in advance of the scheduled activities to allow time for your application to be considered.
2.6 Eligible Activities
Eligible activities are of the following nature and type:
- Capturing value-added opportunities
- Adapting to changing consumer demands within the mandate of AAFC
- Implementing and/or developing strategies and processes to address urgent or critical issues (such as outbreaks, other threats, and so on)
- Exploiting emerging opportunities, such as optimizing processes, developing technology and conducting feasibility studies for products, processes, and technologies
- Capacity building and tool development to anticipate and prepare for the future. This includes developing innovative approaches to take advantage of new opportunities and address issues of broad public benefit.
- Facilitating new approaches and solutions by testing new ideas and processes for sector-wide application
Ineligible activities include, but are not limited to, the following:
- Project activities intended to directly influence/lobby governments
- Advertising, promotional and/or awareness activities that brand one region, commodity, and/or product over another
- Information sharing and/or general awareness activities (such as symposia, meetings, tradeshows or conferences) unless they directly relate to the project and aim to contribute to and/or disseminate project results
- Activities deemed to be part of normal business practice for any recipient
- Normal commercial expansion (such as enlarging operational facilities)
- Basic research
- Activities undertaken at the commercialization phase for a product, process or technology
- Support for university or research chairs
- Support for speakers at general meetings that do not address a project-related issue
- International marketing and promotion
- Testing of food or other agricultural products on humans (such as human clinical trials)
2.7 Eligible Costs
Eligible costs are the costs directly related to the project that fall within the recognized cost categories and respect all conditions and limitations set out in this guide and the contribution agreement if the project is approved.
Eligible costs are categorized under standard cost categories for all funding projects. Eligible cost categories under CAAP (2014-2019) include:
- Contracted Services
- Other Direct Project Costs
Note: Eligible costs are subject to all conditions and limitations set out in this Applicant Guide (including those listed in Section 2.8 - Ineligible Costs or Limitations) and the Contribution Agreement if the project is approved.
Eligible costs must be presented, in the budget, under the standard categories for all funding projects, as identified in Annex B – Standard Cost Categories.
An Applicant may use cash and/or in-kind contributions towards their percentage of contributions towards eligible costs (see Section 2.4 - Cost Sharing).
The program start date is April 1, 2014, and in no instance will any costs incurred prior to that date be eligible for reimbursement. Any costs incurred after the program end date March 31, 2019, will not be eligible for reimbursement, or considered as an industry contribution toward the project.
Note: AAFC may allow eligible costs to be incurred after a complete funding proposal has been received by the Program, but prior to the signing of a Contribution Agreement if AAFC deems this necessary for the achievement of objectives under the project and if such costs are reasonable and required to carry out the eligible activities to which they relate.
Please note, however, that even if an Applicant is advised that their project is approved and the Applicant starts incurring costs, no costs can be reimbursed unless a Contribution Agreement is ultimately signed between the Applicant and AAFC. Thus, any costs incurred prior to the signing of a Contribution Agreement would be incurred solely at the Applicant's risk without obligation of payment by AAFC.
2.8 Ineligible Costs or Limitations
Ineligible project costs are, but are not limited to, the following:
- Any costs incurred before April 1, 2014, or after March 31, 2019
- Assets and capital items not required to meet the project objective(s)
- Building and land purchases
- Direct income support
- Normal costs of establishing a commercial operation
- Costs related to normal commercial expansion
- Refundable portion of the GST/HST, value-added taxes, or other items for which a refund or rebate is receivable
- Overhead administration costs calculated by a percentage of project costs
- Financial audits
- Other costs that AAFC deems ineligible
Project cost limitations include, but are not limited to, the following:
- Expenditures for capital assets must not exceed 25% of total project costs. AAFC must approve, in advance, these expenditures in writing. They must also meet other disposal requirements outlined in the Contribution Agreement (see Section 5.3 - Retention and Disposition of Assets).
- Program contribution funding may not be used to pay for costs incurred by federal government departments, agencies and/or employees.
- Per diems will contribute to covering the costs for daily accommodation, meals, local or in-city transportation (buses, taxis, vehicle rentals, etc.), and incidentals (personal phone calls, laundry, insurance, gratuities, etc.) for individual travel.
- Recipients may:
- claim the established per diem; or
- claim an amount less than the established per diem.
- Whether using option (a) or option (b), individual invoices and proof of payment for these incurred travel costs will not be required for claims, however, proof of travel is required (i.e., boarding pass, hotel invoice).
- If using option (a) per diems are payable for every day on travel status as follows:
- Travel within Canada: $300 CAD/day (Canadian per day) for each day that ends with an overnight stay;
- Travel within Canada with no overnight stay:$70 CAD/day;
- Travel outside Canada: $400 CAD/day.
- For the costs of ground transportation to and from the traveller’s home/work and the commercial carrier (air, rail, bus), the Recipient may:
- claim a flat rate of $100 CAD to cover all "to and from" ground transportation expenses per trip. This $100 will cover costs associated with taxis, buses, or the traveler’s own vehicle, including kilometric rates and parking; or
- claim an amount less than the established flat rate.
- The recipient may claim cost for air, rail and ground transportation (to an out-of-city destination) for individual travel as follows:
- Air: economy rate (not Business or First Class) fare;
- Private vehicle: kilometric rates (no higher than the rates of the National Joint Council Travel Directive as it stands on the day of travel) as well as costs for parking at the destination;
- Rental vehicle: the cost for a mid-size vehicle (or the cost of a larger vehicle, based upon factors such as, but not limited to, safety, the needs of the traveler, and the bulk or weight of goods transported); gas, and parking at the destination
- Note: recipients are obliged to keep all invoices and proofs of payment, as per the terms of their Contribution Agreement.
3.0 How to Apply
Please note that the submission of an application creates no obligation on the part of AAFC to provide funding for the proposed project. As an Applicant, you must ensure that you meet all eligibility criteria before submitting your application.
Fax/Mail or Email
For those applying by fax/mail or e-mail, please see the contact information provided in Section 6.0 Contact Information to obtain your Project Application Form, a Project Work Plan and Budget template along with the necessary instructions.
A complete application package consists of a completed AAFC Project Application Form, a Project Work Plan, a Budget, and such additional supporting documentation (listed in Section 3.1.3 - Additional Requirements) required by the program to fully assess the project's merit to be funded.
Project Application Form
Complete all mandatory fields in the Project Application Form.
In your response to the following sections of the Project Application Form, include the following information:
Under Project Description:
- Describe and justify the funding request, highlighting key activities and expected outcomes.
- Describe how the project:
- Meets the program objective.
- Is in line with sector-wide priorities identified by industry and/or government.
Under Results and Benefits:
- List anticipated results. Describe how they meet a need or demand, or address a gap or issue. Identify how the results benefit the agriculture, agri-food and agri-based product sectors in Canada.
- Describe how this project will benefit: (be clear on the size and scope of the benefit)
- Agricultural producers
- Other stakeholders
- Canada (where applicable: employment, environment, and so on)
Under Organizational Capacity:
- Outline the organization's capacity to deliver and complete the project. Where applicable, address the following: financial management systems and accounting practices; management and organizational structure; technological and operational capabilities; marketing practices and experience; and previous project experience.
- Provide an overview of the Applicant's organization (mission, history, stakeholders represented, and so on).
Under Risk Assessment:
- Identify key risks and corresponding mitigation strategies. Where applicable, address the following: financial risks; commercial risks; environmental risks; technological risks; and sector impact.
Under Project Contributors and External Parties:
- Describe the participation of each contributor and external party.
Below is an overview of what is expected in each additional component of the application.
3.1.1 Work Plan
The Work Plan provides a description of all project activities and timelines, as well as overall key project outcomes. Applicants must complete a Project Work Plan template for the work being performed under a contribution agreement.
To complete the budget, please read the "Instructions" worksheet provided in the Project Budget template.
Applicants are also encouraged to review the standard cost categories for assistance with the categorization of costs within the Budget form.
For project costs set out in this Budget to be considered Eligible Costs they must fall within the recognized cost categories and respect all conditions and limitations set out in this Program Applicant Guide, whether or not the Budget is approved by the Parties. For greater certainty, these Eligible Costs must also be reasonable, reflect Fair Market Value and be directly related to the project.
3.1.3 Additional Requirements
Applicants should submit the following information, where applicable, to support the completed Project Application Form, Work Plan and Budget:
- Executive Summary: Applicants must submit a one-page executive summary of their project.
- A copy of the Applicant organization's Certificate of Incorporation or Articles of Incorporation: Certificates and Articles of Incorporation are issued and filed, respectively, by or with provincial, territorial or federal government that document the applicant's status as a legal entity.
- A copy of the Applicant organization's last two years' financial statements and the most recent interim financial statement:
- The organization's annual financial statements (audited or reviewed) for the past two years or since the date of business start-up where the business is less than two years old;
- the latest interim (audited or unaudited) financial statements; and,
- the most recent annual report or audited financial statements of the parent company or principal owner (if applicable).
- Annex A - Consent to Disclose Personal and/or Business Information Form: Written consent for the disclosure of third-party personal and business information to AAFC. Third party information is information that is not in the public domain and is submitted about an individual and organization other than the applicant. The department will use this information to assess projects under AAFC program. It may also use the information to determine eligibility for other programs and to evaluate agricultural programming.
- Annex C - Copyright Permission Form: Permission Form to grant AAFC the permission to reproduce or redistribute the whole or any part of documentation provided to third parties. Documentation is reproduced or redistributed in order to assess the application as well as to determine eligibility for other AAFC, Government of Canada or provincial programs from which the Applicant may benefit.
- Project Endorsement Letters/ Letters of Support: Letters of support from organizations indicating they believe there is a need for the proposed project and expressing hope that the proposed project will be accepted.
Confidentiality: It is the Applicant's responsibility to clearly identify, on any documentation submitted to AAFC, the information that is considered commercially confidential. This information will not be disclosed unless required by law, including the Access to Information Act, or upon the express authorization of the applicant.
4.0 Assessment and Approval
4.1 Assessment Criteria
The following criteria will be used to assess the application form and supporting documents:
- The CAAP (2014-2019) objective - how well the project meets the objective
- Priority - how much of a priority the project is for the industry and/or government
- Benefits to Canada - how much the project is likely to benefit agricultural producers, processors, other stakeholders and Canada
- Quality of the work plan - clarity and completeness of the work plan and proposed activities in relation to previous or current work
- Feasibility - how likely it is that planned results will be achieved within the timeline, how appropriate the budget is; consideration of project risks
- Capacity - the Applicant's proven technical, financial and managerial capacity/capability
AAFC reserves the right to ask for any added information needed to review the application.
If you are successful, AAFC will provide a written decision letter outlining the level of assistance awarded and any other conditions if applicable.
4.2 Contribution Agreement
Successful Applicants who enter into a Contribution Agreement (CA) with AAFC will be referred to therein as Recipients. Recipients are required to enter into a CA that outlines the amount of funding AAFC will provide to the Recipient toward eligible costs, as well as the Recipient's responsibilities and obligations.
4.2.1 Payments to Recipients
AAFC will make payments based on claims submitted for eligible costs incurred and paid by the Recipient in accordance with the terms and conditions of the CA. Each claim must be supported by details of the costs being claimed and certified by an authorized official of the Recipient.
Advances may be made available based on AAFC's assessment of the project risk (see Section 5.1 - Risk Framework) and where need is substantiated.
4.3 Reporting Requirements
Recipients will be required to provide progress reports using forms to be provided by AAFC, describing the activities completed and progress made towards deliverables, as described in the Project Work Plan (see Section 3.1.1 - Work Plan).
Recipients will also be required to provide performance reports annually and at the end of projects, using forms provided by AAFC. Those reports will track progress against project performance measures.
Financial reporting will be required with each request for reimbursement of expenditures, in addition to year-end accounting and other financial reports.
Other reports may be required at AAFC's discretion.
Note: When completing your Budget, please ensure you have allowed sufficient resources to perform this function as well (see Section 3.1.2 - Budget).
5.1 Risk Framework
Once a project is approved for contribution funding, AAFC will conduct a risk assessment to determine the overall risk level of the project.
The result (risk level) of this assessment does not determine eligibility for funding but will affect, among other things:
- The frequency of progress reporting;
- How often advances can be provided to the Recipient for contribution funding;
- The amount of funds to be held back (holdback);
- The frequency of site visits; and
- Percentage of supporting documentation required for claim verification
AAFC's contribution agreement template has been designed to accommodate this framework and its results. A letter will accompany the CA to outline the requirements for the above.
5.2 Intellectual Property
By signing the application form you are allowing AAFC to reproduce and distribute the whole or any part(s) of your application for the purposes outlined in Section 5.6 Business Information.
CAAP (2014-2019) is an initiative pursuant to which contribution funds may be paid to Recipients. Title to the intellectual property developed by the Recipient of contribution funding will vest in the Recipient or a third party, as may be negotiated by the Recipient and the third party.
However, AAFC will engage in program administration activities and in other follow-up activities. AAFC may require the inclusion of a non-exclusive, world-wide, royalty-free and perpetual license or sub-license, as applicable, allowing AAFC to reproduce and to distribute by any means the whole or any part of any documents generated by or for the Recipient for these purposes, within the Department, within the Government of Canada, or to other governments, as part of the contribution agreement.
5.3. Retention and Disposition of Assets
The department will include terms in the CA to allow AAFC to direct that assets purchased with contribution funds or needed to meet the Recipient's obligations under the CA be retained until the completion of the project or the repayment of AAFC contribution funding (if any). If the Recipient wishes to dispose of the assets beforehand, they will be disposed of in the manner that AAFC determines or to such person as AAFC authorizes. This means that if the Recipient wishes to dispose of assets that are purchased using contribution funds or needed to meet the Recipient's obligations under the CA, then the Recipient must send a request for authorization to do so to the Minister or his representative before disposition. The terms of the CA also allow AAFC to direct, at the completion of the Project or upon earlier termination of this Agreement, the Recipient to keep, or to dispose of the capital assets acquired by the Recipient using the Minister's contribution. Note that AAFC will have no property ownership or security interests in any assets purchased with contribution funds.
5.4 Official Languages
5.4.1 Language of Service
Applicants and Recipients are encouraged to communicate with AAFC in the official language of their choice. AAFC reviews and assesses applications and project deliverables in both official languages.
5.4.2 Language Obligations of Recipients
Depending on the nature of the program, the type of Recipient, and specific project activities to be undertaken, the Government of Canada may require the Recipient to make information available to and interact with the public in one or both official languages on terms and conditions to be specified in the Contribution Agreement.
In all cases the Recipient must publicly acknowledge AAFC's support for the project and project-specific communications products. The department may request that such acknowledgment include text in both official languages. Contribution funding from CAAP (2014-2019) can be used to help cover the cost of conducting activities and communicating with the public in Canada's official languages as long as the costs fall within the definition of eligible costs and are included within the project budget.
5.5 M-30 Law (for Quebec organizations only)
The Act Respecting the Ministère du Conseil Exécutif (M-30) may apply to an applicant in the Province of Québec. Applicants will be required to complete an additional information form and, if they are subject to the requirements of the Act, to obtain written authorization and approval from the Government of Québec prior to execution of any contribution funding agreement.
5.6 Business Information
AAFC may collect, use and share an Applicant's information, which includes, but is not limited to, documentation prepared in the administration of CAAP (2014-2019). AAFC will use and share this information for the purposes of assessing and reviewing the eligibility of the Applicant and the proposed project with:
- Other AAFC programs and/or other AAFC Branches;
- Other departments or agencies of the Government of Canada; and
- Other levels of government in Canada.
The information may be shared with the parties mentioned above, for purposes that include, but are not limited to:
- The use of the Applicant's information in the administration, including audit and evaluation of the program;
- Surveying for the Applicant's experience with AAFC;
- Audit, analysis and risk assessment of the Applicant and/or the project;
- Determining the possible availability of funding for the Applicant's project under another program or initiative;
- Examining the scope and direction of agricultural programming in Canada; or
- Ensuring efficiencies and effectiveness in setting up and administering agricultural and other government programs.
AAFC publishes a list of approved projects on the departmental website and may publish such list on other Government of Canada websites. This list would include the name of the Recipient, the project name, and the amount of CAAP (2014-2019) contribution. AAFC may also publicize this information, along with a description of the project, in:
- Project funding announcements or other promotions
- In other government documents, including public reports on the progress of government initiatives
5.7 Environmental Considerations
All projects receiving funding from AAFC must comply with the Canadian Environmental Assessment Act, 2012 (CEAA2012). It is your responsibility to review whether your type of project is listed on the Regulations Designating Physical Activities and to contact the Canadian Environmental Assessment Agency. Indicate in the "Project Description" section of the Application Form if your type of project is listed on the Regulations. Also indicate if the project's activities are located on Federal Crown land (includes federal and Aboriginal reserve land), on private land or another type of land. If you do not know, indicate that this information is "unknown".
The Minister of Agriculture and Agri-Food will consider whether your project requires an environmental determination under section 67 of the CEAA 2012 and take the necessary steps if a determination is required and may inform you accordingly.
Provide details on any environmental risks in the "Risk Assessment" section in the Application Form, which includes confirming whether you have or will obtain federal, provincial, territorial or municipal authorizations and permits. AAFC reserves the right to request additional information.
6.0 Contact Information
For further information please contact us.
Fax: 613 773 1922
Applications can be mailed to the following address:
Agriculture and Agri-Food Canada
Industry Development Division
Canadian Agricultural Adaption Program (2014–2019)
1341 Baseline Road
Tower 7, 8th Floor, Room 242
Ottawa, ON K1A 0C5
Annex A: Consent to Disclose Personal and/or Business Information
See the Consent to Disclose Personal and/or Business Information form.
Annex B: Cost Categories
See the AAFC Standard Cost Categories.
Note: This is a generic list of cost categories. It includes costs that may be ineligible under CAAP (2014-2019). Please see Sections 2.6 - Eligible Activities, 2.7 - Eligible Costs and 2.8 - Ineligible Costs or Limitations for more details.
Annex C: Copyright Permission
See the Copyright Permission form.
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