We are nearly halfway through the Growing Forward 2 (GF2) initiative, a five-year commitment by the federal and provincial governments seeking to encourage innovation, competitiveness and market development, adaptability and sustainability in certain agriculture and support sectors in Canada.
In Ontario, Year 3 of GF2 commenced April 1, 2015, and continues to offer the same 35% to 50% cost-share funding assistance to producers, as was discussed in the July 12, 2013 issue of Farm Alert. The Ontario Soil and Crop Improvement Association (OSCIA) recently released an update to the GF2 program guide effective for Year 3 that should interest advisors and producers. The update, released April 30, 2015, includes these important changes:
- Project applications may now require the completion of the free two-day Growing Your Farm Profits Workshop and Action Plan Review. (Previously, attendance at the workshops was optional.)
- Cost-share funding now applies only to invoices incurred and dated after the OSCIA letter approving funding allocation.
- Maximum cost-share funding is now applicable on a per-project basis. (Previously, there was no specified maximum funding per project.)
These updated requirements for GF2 Year 3 projects are similar to how the program worked under Growing Forward 1. The new requirements refine the process of having producers go through the workshop and having a pre-approved plan prior to incurring any expenditures. As a consequence, these additional steps will require advisors to communicate with producers so that they enroll in the program, complete the necessary workshops and other requirements, and apply for the applicable project. This is all done in a timely manner so that advisors can execute their incorporation or re-organization plans and agreements before any due dates.
Applications for cost-sharing projects are accepted by OSCIA only at certain intake dates. For GF2 Year 3 these dates are:
- May 1 to May 21, 2015
- August 10 to August 27, 2015
- November 16 to December 3, 2015
Advisors and producers alike should note these dates if a project is anticipated for the upcoming fiscal year, and should ensure that all requirements are met before submitting project applications during these intake dates.
A number of Collins Barrow services will continue to qualify for 50% cost-share upon OSCIA approval, including the following:
- succession planning
- expansion planning
- human resources planning
- partnership or shareholder agreements
- partnership or share interest transfers
- incorporation and election filings
- other business-plan-related items
While each project is now subject to a capped maximum funding amount (for example, maximum cost-share funding is $10,000 for a succession plan or $3,000 for a Farm Financial Assessment), it is possible for a producer to apply for multiple projects. A producer may have up to two applications submitted in an intake and up to three projects ongoing at any one time. That is to say, a producer may have both a succession plan project underway with a cost-share cap of $10,000, and a separate business plan operationalization project involving the transfer of shares or partnership interest to a succeeding generation with a cost-share cap of $10,000 (if approved by OSCIA).
Other projects will also continue to qualify for cost-share funding. Accordingly, we recommend reviewing the GF2 program guide for full details:
http://www.ontariosoilcrop.org/en/programs/growing_forward_2_new.htm
With careful planning and timely communication, advisors and producers will be able to work together to ensure that any projects for the current fiscal year qualify for the Growing Forward 2 Year 3 cost-share funding. They will also optimize the cost-share potential.
Your Collins Barrow advisor can assist in determining the eligibility of your farming operation projects for Growing Forward 2, and assist with the necessary enrollment and application steps.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.