COTA On-Farm Climate Action Fund: How to Apply (Eligible Projects + Costs)

COTA On-Farm Climate Action Fund: How to Apply (Eligible Projects + Costs)

If you run an organic farm and want to reduce emissions while building healthier soil, the COTA On-Farm Climate Action Fund can help with costs. This federal program, managed by the Canada Organic Trade Association (COTA), offers both technical and financial support for climate-smart practices on organic farms across Canada. The funding encourages actions that lower greenhouse gas emissions and help store more carbon in the soil.

---

What the COTA On-Farm Climate Action Fund Supports

The COTA On-Farm Climate Action Fund is part of the federal On-Farm Climate Action Fund (OFCAF). COTA focuses on organic and transitioning-to-organic farms.

Program goals

• Help farms cut greenhouse gas emissions
• Increase carbon stored in farm soils
• Support practical, proven beneficial management practices (BMPs)

Funding amount

• Up to $100,000 per farm during the program
• Farms must pay at least 15% of total project costs. This can be cash or in-kind, like labour or equipment.

Program status

• Status: Open (application times may vary by province and BMP)
• Jurisdiction: Federal, managed by COTA

---

Who Is Eligible?

To qualify for the COTA On-Farm Climate Action Fund, your farm must:

• Have a valid organic certification or be formally transitioning to organic
• Be a legal business entity in Canada
• Do in-field crop production (livestock farms may qualify if they use eligible BMPs, such as rotational grazing)
• Operate in a province where COTA delivers the program
• Agree to use BMPs recommended by an approved agronomic expert
• Provide the required 15% cost-share

Who is not eligible?

• Farms without organic status or a transition plan
• Applicants looking for duplicate funding for the same BMPs from another OFCAF partner

---

Eligible Projects and Beneficial Management Practices (BMPs)

Funding is only for certain climate-friendly practices. Approved BMPs under the COTA On-Farm Climate Action Fund include:

1. Cover Cropping

• Planting cover crops to protect soil and boost carbon storage
• Funding covers seed, planting, and termination costs

2. Nitrogen Management

• Steps that reduce nitrous oxide emissions and improve nutrient use
• Includes soil testing and nutrient management planning

3. Rotational Grazing

• Managed grazing systems that improve pasture health and increase carbon storage
• May pay for fencing, water systems, and grazing plans directly related to BMP adoption

You need an agronomic recommendation for your BMPs. COTA may also require site checks or audits before approval.

---

Eligible Costs You Can Claim

The fund covers direct and technical costs for BMP adoption. These include:

• Cover crop seed and planting costs
• Soil testing and analysis
• Agronomic consulting and BMP planning
• Equipment or materials needed for BMP work
• On-site assessments, monitoring, and verification

Costs not related to approved BMPs are not eligible.

GrantHub’s eligibility matcher can help you filter programs by province and farm type quickly and easily.

---

How to Apply

The application steps are clear and simple:

1. Check if you are eligible (organic status, farm type, province)
2. Work with an agronomic expert to choose the right BMPs
3. Create a project plan and budget, showing your 15% contribution
4. Send your application to COTA when intake opens
5. Carry out the approved BMPs and take part in any required monitoring or audits

COTA offers help during the process, including technical support and resources.

---

Common Mistakes to Avoid

1. Applying without proof of organic status
   COTA will ask for your certification or transition documents.

2. Expecting 100% grant funding
   You must pay at least 15% of project costs, in cash or in-kind.

3. Choosing practices that are not approved
   Only nitrogen management, cover cropping, and rotational grazing are eligible.

4. Applying for the same BMP funding from another OFCAF partner
   You cannot get funding for the same BMP from more than one delivery group.

---

Frequently Asked Questions

Q: How much funding can one farm receive?
Up to $100,000 per farm, depending on the project and approved costs.

Q: Do I need to contribute my own money?
Yes. Farms must pay at least 15% of total project costs, either with cash or eligible in-kind contributions.

Q: Can I use this with other farm grants?
You can sometimes combine funding, but not for the same BMPs under OFCAF. Always declare other funding sources.

Q: Is this funding taxable income?
Grant funding is often taxable. Ask your accountant how this applies to your farm.

Q: Do transitioning farms qualify?
Yes. Farms formally transitioning to organic can apply, as long as you show documentation.

---

Related Guides You May Find Helpful

• On-Farm Climate and Agriculture Investment Programs: Eligibility Guide
• Environmental, Clean Energy, and Climate Action Grants in Canada: Eligible Expenses
• Poultry and Egg On-Farm Investment Program: Eligible On-Farm Costs

---

Next Steps

The COTA On-Farm Climate Action Fund gives strong support to organic farms wanting to use climate-friendly practices. Make sure you have the right documents and a clear project plan before you apply. If you want to compare this fund with other grants, GrantHub tracks hundreds of programs across Canada and can help you find the best options for your farm.

---