Canada’s second largest wheat and flour milling operation, Parrish and Heimbecker, Ltd., was recently awarded a federal funding investment of $10M to build a new grain processing plant in Hamilton, Ontario. Canadian government funding provided through Agriculture and Agri-food Canada (AAFC) will allow the company to increase its production capacity and market exports.
Parrish and Heimbecker, Ltd.’s latest advanced facility will use innovative wheat cleaning technologies to improve productivity, food safety, and product traceability. The new plant will create 16 full-time food processing jobs in Hamilton.
The project will receive repayable funding from the AgriInnovation Program (AIP); an initiative that encourages agricultural businesses to commercialize and adopt innovative technologies, products, or processes. The program offers 0% interest loans up to a maximum of $2 million to $10 million.
Agricultural Technology Will Improve Product Traceability
Founded in 1909, Parrish and Heimbecker, Ltd. has grown to become one of Canada’s most prominent agri-food processors. Although the company is involved in many aspects of the agri-food business, they primarily procure, mill, and merchandise Canadian grains.
Repayable loans provided by Agriculture and Agri-food Canada will allow the company to construct a state-of-the-art facility with built-in traceability features. The equipment purchase and overall business expansion is expected to create 16 new jobs.
The agriculture technology will improve wheat cleaning processes and reduce product impurities prior to the milling stage.
In the event of product recall, Parrish and Heimbecker, Ltd. will be able to identify specific product batches that have been affected and alleviate any consumer concerns. By receiving a Canadian government loan, the business will be able to increase domestic and international revenues and strengthen the reputation of Canadian products through enhanced safety.
Canadian Government Funding for Agricultural Processors
Agri-food producers and processors can accelerate strategic projects with the support of government funding. Canadian government grants and loans both have strategic benefits when it comes to financing your business’ expansion; understanding how each type works is critical to growing efficiently.
AgriInnovation: Agriculture Technology Funding
AgriInnovation Program (AIP) repayable funding supports technology development, commercialization, and demonstration projects by extending 0% loans to businesses, extending cash flow and enabling large-scale business expansion.
The program is divided into 2 streams:
- Industry-Led Research and Development: Supports the development of innovative agricultural practices, products or processes.
- Enabling Commercialization and Adoption: Supports the commercialization or adoption of innovative technologies.
Growing Forward 2 Ontario Agriculture Grants
Since 2013, Growing Forward 2 Ontario has provided agricultural grants for a variety of productivity-building and market development projects. Through the program, agricultural producers and processors in Ontario may receive up to 35-50% of project related costs to a maximum $350,000 in small business grants.
Please Note: Both programs are set to expire in April 2018, therefore funding is quite limited moving forward.
Start Using Agriculture Grants for Your Strategic Projects
Businesses performing innovative projects that improve the agri-food sector may be eligible to receive Canadian government funding. However, it can be challenging to search through the wealth of information online and develop a funding plan to optimize your business’ financing strategy.
If you would like to discuss your eligibility for agricultural grants, please contact Mentor Works. Our team will be able to confirm your project’s eligibility for specific programs, identify submission timelines, highlight your project deliverables and provide application support.