Prairie Watersheds Climate Program (PWCP)

Prairie Watersheds Climate Program

The Prairie Watersheds Climate Program (PWCP) works with producers to increase the implementation of select Beneficial Management Practices (BMPs) on farms in Saskatchewan and Manitoba. The BMPs eligible under the PWCP focus on three categories:
1. Rotational Grazing
2. Nitrogen Management
3. Cover Cropping

The Prairie Watersheds Climate Program Approach

  • PWCP takes a grassroots, regional approach to addressing issues related to climate change in agriculture and supporting producers to implement BMPs that have a positive impact on Canadian agriculture.
  • 85 per cent of funding goes towards adoption of BMPs and BMP education/awareness activities for agricultural producers, who are the Ultimate Recipients of the program.
  • Ultimate recipients (farmers and ranchers) can seek registration and offset credits under voluntary offset credit programs for GHG emissions reductions generated with the support of the Prairie Watersheds Climate Program. The ability of ultimate recipients to participate in these markets will be subject to eligibility requirements set up by voluntary offset programs.
  • Ultimate recipients (farmers) cannot apply to any regulatory carbon offset program for the GHG emissions reductions generated between the Project Eligibility Date (“February 7, 2022 “) and the Project Completion Date (“March 31, 2024“) including those dates.
    • GHG Emission Reduction Credits restrictions for Ultimate Recipients only apply to the fiscal year(s) in which the Ultimate Recipient receives funding.
  • All payments made to Ultimate Recipients for BMP adoption in the areas of nitrogen
    management, cover cropping, and rotational grazing are to be considered “farm support payments” as per subsection 234(2) of the Income Tax Act R.S.C 1985. As such all payments to farmers are to be considered income for the farm business and are subject to Income Tax.
  • MAW will be preparing and submitting annually to the Canada Revenue Agency (CRA) AGR-1 forms for each PWCP payment to Ultimate Recipients.

Important Program Points to Note

  •  An activity can only be funded once on the same parcel of land through OFCAF funding.
  • An Ultimate Recipient who participates in any of the eligible BMP activities in the2022-2023 program year can apply for the same eligible activities on the same land for the 2023-2024 program year.
  • Landlords and tenants both cannot apply for funding on the same piece of land.
  • Producers are eligible for a maximum of $75,000 of OFCAF funding, including all eligible activities across all BMPs for the project period to accelerate their adoption and implementation of on-farm beneficial management practices (BMPs) to reduce GHG emissions, support production efficiency, sustainability, and resiliency on their farm operations.
  • To assist producers with their adoption of all three BMPs, PWCP will offer producers resources to support BMP implementation.