An Alternative Funding Model for Agribusiness Research in Canada


Canadian governments have moved towards a matching funding model for agricultural research. Agricultural organizations can take advantage of this if Canadian Controlled Private Corporations are established to fund research through matching grants, tax credits and investments. A low risk options strategy is presented which uses index options and is a diagonal put spread where an in-the-money put is bought which expires in 1 to 2 years and out-of-the-money puts are sold which expire monthly. In summary, “A small Canadian Controlled Private Corporation can, for a $100,000 up front initial investment, generate at least $100,000 annually in research funding, in perpetuity”.

Share and Cite:

Dale, A. and Currie, E. (2015) An Alternative Funding Model for Agribusiness Research in Canada. Agricultural Sciences, 6, 961-969. doi: 10.4236/as.2015.69093.

Conflicts of Interest

The authors declare no conflicts of interest.


[1] Agriculture and Agri-Food Canada (2013) 2013-14 Reports on Plans and Priorities.
[2] Agriculture and Agri-Food Canada (2013) Meta-Evaluation of Agriculture and Agri-Food Canada’s Innovation Programs (3 of 9).
[3] University of Guelph (2013) University of Guelph-OMAFRA Agreement—2013/2014 Preliminary Budget
[4] Anonymous (1996) Agri-Food Research and Technology Transfer: Renewing the National Strategy. Canadian Agri-Food Research Council, Ottawa, 32 p.
[5] Ontario Ministry of Food and Rural Affairs (2011) How Does the Ministry Set Research Priorities? Meet the OMAFRA Research Advisory Network.
[6] Government of Canada (2011) Canada Business Corporation Act 1985, Amended 2011.
[7] Government of Ontario (2010) Co-Operative Corporations Act, Ontario, 1990, Amended 2010.
[8] Government of Ontario (2011) Canada Not-for-Profit Corporations Act 2009, Amended 2011.
[9] Canada Revenue Agency (2015) Overview of the Scientific Research and Experimental Development (SR&ED) Tax Incentive Program, RC442.
[10] KPMG (2012) Are You Ready for the NEW R&D Regime? October 25, 2012, No. 2012-33
[11] Ontario Ministry of Finance (2012) Ontario Tax Credits Available to Corporations, 2012
[12] Byrd, C. and Chen, I. (2012) Byrd & Chen’s Canadian Tax Principles, Volume II. 2012-2013 Edition, Pearson Canada Inc.,Toronto.
[13] Agriculture Adaptation Council (2013) Growing Forward 2, Capacity Building Funding Assistance for Organizations and Collaborations
[14] Public Service Alliance of Canada (2012) Cuts to Federal Science and Research Programs—Backgrounder.

Copyright © 2022 by authors and Scientific Research Publishing Inc.

Creative Commons License

This work and the related PDF file are licensed under a Creative Commons Attribution 4.0 International License.