New $750-million program opens for greenhouse and indoor food production projects

Agriculture and Agri-Food Canada (AAFC) has launched a new $750-million program aimed at expanding greenhouse and other controlled-environment food production across the country.

The Controlled Environment Agriculture (CEA) Growth Pathway Program will provide funding for projects that increase fruit and vegetable production in facilities such as greenhouses, vertical farms, and other indoor growing operations.

The program is divided into two funding streams. The larger $650-million Technology Adoption Stream will support projects that adopt, expand, or modernize controlled-environment agriculture infrastructure and technology, including automation, robotics, lighting systems and digital growing tools.

A second stream, worth $100 million, is focused on expanding local food production in rural and northern communities through community-led controlled-environment agriculture projects.

According to AAFC, approved projects may qualify for between $100,000 and $10 million in funding.

Broader strategy

The announcement is part of the federal government’s National Food Security Strategy, unveiled earlier this year. The strategy includes $3.2 billion in investments over 10 years aimed at increasing domestic food production and reducing reliance on imported food.

Eligible applicants include producers, Indigenous communities and organizations, non-profit groups, businesses and other levels of government.

Application process

Applications are being accepted through a two-step process. Organizations must first submit a project summary form by Dec. 23, 2026. Applicants whose projects align with the program objectives may then be invited to submit a full application.

The federal government says funding under the Technology Adoption Stream may be provided through either repayable or non-repayable contributions depending on the project, while funding under the Rural and Northern Communities Stream will be non-repayable.

The new program follows several other food security initiatives announced this year, including the $1-billion Food-Link Fund, Farm Credit Canada’s $1-billion Agri-Food Project Finance Fund, and tax measures related to greenhouse infrastructure.