If you farm in Prince Edward Island and manage environmentally sensitive land, the ALUS (Alternative Land Use Services) Program PEI can help cover the costs of protecting it. The program pays agricultural producers and landowners to take certain lands out of production or maintain beneficial management practices. It’s run by the PEI Department of Agriculture and Land and remains open as long as funding is available.
This guide explains how the ALUS Program PEI works, who’s eligible, and how to apply with confidence.
The Alternative Land Use Services (ALUS) Program supports environmental stewardship on agricultural land across PEI. Instead of farming environmentally sensitive areas, you receive payments for protecting or restoring them.
The program focuses on land that provides public environmental benefits, such as water protection and wildlife habitat.
Key facts about the ALUS Program PEI:
You may be eligible if you are actively involved in agriculture and have control of qualifying land.
Eligible applicants include:
You must have legal control of the land for the term of the agreement. Leased land is allowed, but both the landowner and producer may need to be involved in the application.
The ALUS Program PEI supports projects on environmentally sensitive agricultural land.
Common examples include:
Funding is provided to either:
Each project is reviewed on its environmental value and the size of the land area.
There is no single fixed funding amount under the ALUS Program PEI. Payments depend on:
Payments are repayable. This means you must meet the conditions in your land use agreement. If you do not follow the agreement, you may have to repay the funds.
Applying is more relationship-based than competitive, but being prepared helps.
Typical application steps:
Identify eligible land
Review your property to see which areas may qualify as environmentally sensitive.
Contact the PEI Department of Agriculture and Land
Program staff can confirm eligibility and explain local requirements.
Develop a land use agreement
This outlines what land is enrolled, what practices you’ll follow, and the payment structure.
Submit required documentation
This may include maps, land descriptions, and proof of control over the land.
Approval and implementation
Once approved, you carry out the agreed practices and receive payments as outlined.
GrantHub’s eligibility matcher can help you quickly check if provincial stewardship programs like ALUS fit your farm profile before you contact the department.
Assuming all unused land qualifies
ALUS is specific to environmentally sensitive land, not just low-yield acres.
Not clarifying lease arrangements
If you lease land, unclear responsibilities between landowner and producer can delay approval.
Ignoring agreement terms
Payments are tied to compliance. If you do not maintain practices, you may have to repay the funding.
Forgetting tax implications
ALUS payments are usually treated as farm income. Ask your accountant how this applies to you.
Q: Is the ALUS Program PEI currently open?
Yes. The program is open, but approvals depend on available funding.
Q: Can I apply if I lease my farmland to another farmer?
Yes. Landowners leasing active agricultural land may be eligible, but coordination with the producer is usually required.
Q: What types of land are considered environmentally sensitive?
This often includes wetlands, riparian zones, and other ecologically significant areas on agricultural land.
Q: Is ALUS funding taxable?
Generally, ALUS payments are treated as farm income. You should confirm how this applies to your operation with a tax professional.
Q: How long does an ALUS agreement last?
Agreement lengths vary depending on the land and practices involved. Program staff confirm terms during the application process.
If you want to apply for the ALUS Program PEI, start by reviewing your land and speaking with the PEI Department of Agriculture and Land about your eligibility. Many farms also qualify for other stewardship or agriculture programs at the same time.
To find more funding opportunities that fit your farm, visit GrantHub. You can search for active grant and incentive programs across Canada and see which options match your land, location, and farm goals.
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