Saskatchewan Agriculture, Value-Added & Processing Credits (2025 Guide)

Saskatchewan’s agriculture and agri-food sectors benefit from a range of targeted provincial tax credits, grants, and incentives designed to stimulate growth, encourage value-added processing, and drive rural economic development. These programs can offer significant tax savings, direct funding, and strategic advantages for farms, food processors, ag-tech startups, and rural businesses. Below is a summary directory of the main Saskatchewan agriculture and value-added credits available to businesses in 2025.

  • Agricultural Value-Added Tax Credit (AVATC):
    What is it? A non-refundable credit for eligible investments in new or expanded value-added agricultural processing facilities in Saskatchewan.
    Eligibility: Incorporated businesses investing in new or expanded facilities for processing Saskatchewan-grown products (e.g., pulse, grain, food manufacturing, bio-products). Minimum investment thresholds apply, typically $10 million+ for large projects.
    Application: Apply to Saskatchewan Ministry of Finance with a detailed business plan, proof of eligible capital expenditures, and required documentation.
    Calculation Example: If you invest $15M in new food processing capacity, and the credit rate is 15%, you may claim up to $2.25M in credits over the prescribed claim period.
    Tips: Pre-approval is often required. Coordinate with municipal incentives and federal programs for maximum value.
  • Manufacturing & Processing Exporter Tax Incentive:
    What is it? Refundable incentive for manufacturers and processors—including agri-food firms—that increase employment and exports.
    Eligibility: Saskatchewan-registered manufacturers/processors that meet incremental job creation or payroll increase thresholds and export Saskatchewan products.
    Application: Register with the Ministry of Trade and Export Development. Annual applications require proof of payroll/employment growth and export sales documentation.
    Calculation Example: For each new full-time equivalent (FTE) added, a credit (e.g., $10,000 per FTE) may be available, subject to annual program caps.
    Tips: Track baseline and new hires meticulously. Can be paired with the federal Export Development Canada (EDC) insurance and advisory services.
  • Agri-Food Processing Investment Tax Incentive:
    What is it? Tax incentive for large-scale investments in new or expanded agri-food processing operations, often with a refundable or non-refundable component.
    Eligibility: Incorporated businesses making qualifying capital investments (e.g., plant, equipment) above a set threshold, often $10M+.
    Application: Submit detailed project plans, capital expenditure budgets, and post-completion reports to the Ministry of Finance.
    Calculation Example: Invest $25M in a canola processing facility; if the incentive is 10%, claim up to $2.5M as per annual claim limits.
    Tips: Pre-approval required. Check if municipal property tax abatements are stackable.
  • Capital Cost Allowance (CCA) Accelerated Depreciation:
    What is it? Saskatchewan follows federal rules for accelerated CCA on eligible equipment for farming and food processing.
    Eligibility: Businesses acquiring Class 43.1/43.2 or similar assets (e.g., renewable energy, pollution control, food processing equipment).
    Application: Claim via your T2 corporate return (or T1 for unincorporated).
    Calculation Example: New $500,000 grain dryer (eligible class, 100% first-year write-off), deduct full cost in year placed in service.
    Tips: Coordinate CCA claims with investment tax credits to avoid double-counting.
  • Canadian Agricultural Partnership (CAP) Grants:
    What is it? Direct federal-provincial cost-share grants for innovation, food safety, market development, and environmental improvement in the ag sector.
    Eligibility: Saskatchewan-registered farms, processors, ag-tech startups, and rural businesses; eligibility varies by CAP stream.
    Application: Apply through Saskatchewan Agriculture’s CAP portal; requires detailed project proposal, expenses, and reporting.
    Tips: Many CAP grants require pre-approval and reporting on outcomes. Stacking with tax credits may be allowed if not for same expense.
  • Rural and Community Enterprise Incentives:
    What is it? Additional credits, property tax rebates, and municipal incentives for rural businesses and agri-food entrepreneurs.
    Eligibility: Rural small businesses, co-ops, and community-owned agri-enterprises; check with local RM (Rural Municipality) or town.
    Tips: Speak with your RM/town about property tax rebates on new construction, local hiring incentives, or special project grants.
Saskatchewan prairie field during harvest season with combine harvester and golden crops

Combining Saskatchewan & Federal Agri-Business Credits

Saskatchewan agri-businesses can maximize savings by combining provincial credits with federal incentives such as the Scientific Research & Experimental Development (SR&ED) tax credit, AgriInvest, AgriStability, AgriInsurance, and Sustainable Canadian Agricultural Partnership (CAP) grants. Always check program rules for stacking restrictions. For example, you might claim:

Tip: Never claim two credits for the same dollar of expense. Always maintain clear records and allocate expenses to the appropriate credit or grant.

Eligibility & Claim Process Overview

Example Calculation (AVATC):
If your company invests $20 million in a value-added pea protein facility, and the AVATC provides a 15% credit, you may be eligible for up to $3 million in tax credits over several years, subject to annual caps and program terms.

Frequently Asked Questions: Saskatchewan Agriculture & Rural Business Credits

Can I claim both CAP grants and Saskatchewan tax credits for the same project?
You can often combine multiple programs for the same project, but you cannot claim two credits or grants for the same expense. Allocate costs and keep clear records; consult each program’s stacking rules.
What documentation is required for an AVATC claim?
You must provide proof of qualifying capital expenditures (receipts, contracts), project plans, and details of the value-added processing activities. Pre-approval is usually required—apply before construction or expansion begins.
How do I maximize CCA claims for agri-business equipment?
Claim eligible farm or processing equipment in the correct CCA class (e.g., Class 43.1/43.2 for clean tech, Class 29 for manufacturing) and apply accelerated rates if eligible. Coordinate with your accountant to avoid overlap with investment tax credits.
Can rural businesses get property tax rebates?
Many Saskatchewan municipalities offer property tax rebates or deferrals for new construction, renovations, or job creation. Contact your local RM or town office to find out about current programs.
What if my business is a partnership?
Certain credits (e.g., AVATC) may be available to partnerships, provided the partners are eligible corporations or individuals. Share of the credit is allocated according to the partnership agreement. Always check program details.

Other Saskatchewan Business Credits & Resources

See also: GST/HST Rebates (federal property and business rebates), Manitoba Business Credits for interprovincial operations.