If you want to apply for the AgriAssurance Program, knowing which costs are eligible or ineligible helps you apply successfully. This federal program helps Canadian agriculture and food businesses meet market and regulatory requirements, but it only reimburses certain expenses. Many applicants get rejected because they include costs the program does not cover.
Below, you’ll find a simple guide to eligible and ineligible costs under the AgriAssurance Program, with examples you can use for your project.
The AgriAssurance Program, run by Agriculture and Agri-Food Canada (AAFC), supports projects that help industry develop, use, or maintain assurance systems. These systems include food safety, traceability, animal welfare, and plant health.
Eligible costs must meet these three rules:
1. Professional and Technical Services
These are fees for outside experts who help build or improve an assurance system.
Example: Paying a consultant to match your food safety program with GFSI-recognized standards.
2. Certification and Accreditation Activities
These are costs to get or keep a recognized assurance system.
Example: Paying for an ISO or CanadaGAP audit.
3. Training and Capacity Building
Training must be tied to putting the assurance system in place.
Example: Training your quality assurance team on new traceability rules.
4. Project Management (Limited)
Only project management costs that are directly for the project are eligible.
Example: Hiring a contract coordinator to manage assurance paperwork during the project.
5. Travel (Project-Specific)
Travel costs must be needed and reasonable.
Example: Mileage and hotel for a food safety assessment.
GrantHub’s eligibility matcher helps you filter agriculture grants by cost type and funding stream in seconds.
AAFC does not cover costs that are part of normal operations, ongoing, or not tied to assurance system results.
1. Capital Purchases and Infrastructure
Example: Buying new processing equipment, even if it helps with food safety.
2. Routine Operating Expenses
Example: Paying permanent employees for their usual work.
3. Marketing and Sales Activities
Example: Printing marketing materials about your certification.
4. Costs Outside the Approved Period
Example: Consultant invoices from before AAFC approval.
5. Refundable or Recoverable Taxes
Example: Claiming HST if your business is registered and can get rebates.
AAFC does not pay for everyday business expenses, even if they help with compliance.
Certification costs are only eligible when they fit the approved project plan.
If you pay for something before AAFC approves your project, you cannot claim it.
You can only claim the part of an employee’s wage spent directly on the project. Keep clear records to show this.
Are employee wages eligible under the AgriAssurance Program?
Yes, but only for work that is directly connected to the approved project. Regular duties or full salaries are not eligible unless you give a clear reason and proof.
Can I claim software costs for traceability systems?
Sometimes. Software may be eligible if it is needed for the assurance system and is approved by AAFC before you buy it.
Are audit costs eligible every year?
Only if the audit is part of the approved project. Regular yearly audits outside the project are not covered.
Can nonprofits and industry associations apply?
Yes. The program mainly helps industry groups, associations, and other eligible organizations working on assurance systems.
Knowing which costs are eligible or ineligible is key to a strong AgriAssurance Program application. Before you finish your budget, check your planned expenses against the latest AAFC guidelines.
GrantHub tracks hundreds of active agriculture and food grants across Canada—including programs for certification, food safety, and traceability. Finding the right ones for your business can help you avoid costly mistakes.
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