What's new – Additional grant funding is available for rural Indigenous and small communities.
Overview
The Economic Development in Rural Alberta Plan sets out a 5-year commitment that guides rural economic growth, reflecting on innovation, diversification, and sustainable, long-term economic development. The plan outlines 5 strategic directions, each of which connects to supporting initiatives already underway as well as new actions we are taking to ensure rural Albertans have economic opportunities where they live.
Rural Albertans and Indigenous community members helped inform the plan by sharing their perspectives on the successes, challenges and opportunities of rural economic development.
Together, we are working toward the vision that Alberta’s rural community is resilient, innovative and prosperous, providing sustainable economic opportunities for individuals, families, businesses and visitors.
New grant funding available
Alberta’s government is providing an additional $3 million to Indigenous and small communities in rural Alberta to support local economic development.
Indigenous and small communities are vital to Alberta and its long-term economic prosperity. In December 2022, we recognized the importance of these communities by releasing the Economic Development in Rural Alberta Plan.
We're investing in the second round of grants through the Small Community Opportunity Program to further implement this plan.
Economic Development in Rural Alberta Plan
The plan's 5 strategic directions and corresponding initiatives and actions will support capacity building in the key areas of entrepreneurship, skills development, small business supports, marketing rural and Indigenous communities, promoting tourism, and rural economic development interconnectivity at the regional level.
Review the highlights of the 5 strategic directions below or read the full plan.
Strategic direction 1: Economic development-enabling infrastructure
Identify and improve power, water, telecommunications and transportation networks to support investment and growth in rural Alberta.
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- Bolstering Alberta’s irrigation infrastructure with a $19 million investment in the Irrigation Rehabilitation Program to help irrigation districts update water infrastructure and do more with current water allocations.
- Building Alberta’s regional airport network with a $1.13 million investment that will support growth, while restoring and developing connections between regional and international airports.
- Connecting rural Alberta to high-speed internet through a $150 million combined provincial-federal investment to continue advancing the Alberta Broadband Strategy.
- Investing in water management infrastructure with an additional $50 million over 3 years to protect communities and infrastructure from floods and drought and make sure Albertans have a safe, reliable water supply.
- Transitioning to the Local Government Fiscal Framework from the Municipal Sustainability Initiative to provide permanent, predictable capital and operating funding for a wide range of infrastructure projects.
- Upgrading rural transportation and water infrastructure by investing more than $236 million for 125 local projects in small and rural communities.
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- Alberta Broadband Strategy continued to guide improvements to provincewide connectivity and bring high-speed internet access to homes in 74 rural, remote and Indigenous communities across Alberta through the Alberta Broadband.
- Alberta Municipal Water/Wastewater Partnership and the Water for Life program provided $142 million in cost-shared funding for 72 municipalities to build or upgrade regional water supply and treatment facilities, and wastewater treatment and disposal facilities.
- Building Forward: Alberta’s 20-Year Strategic Capital Plan guided rural communities in planning 20 projects such as schools, roads and transportation corridors that are expected to create 740 jobs.
- Built up agricultural societies through the Agricultural Societies Infrastructure Revitalization Program by providing $2.5 million for major repairs and upgrades to existing facilities like community halls, arenas and rodeo grounds.
- First Nations Drinking Water Tie-in Program supported 3 First Nations communities in completing feasibility studies and construction projects.
- Irrigation expansion and modernization partnership with the Canada Infrastructure Bank and 9 irrigation districts continued with Alberta’s $24.8 million investment to help expand primary agriculture production and grow the agri-food and value-added processing industries.
- Municipal Sustainability Initiative allocated $186.3 million to municipalities and Metis Settlements for local infrastructure priorities that build safe, strong and resilient communities.
- Extending highway 686 to connect northeastern and northwestern Alberta through an agreement that was established with Loon River First Nation, Peerless Trout First Nation, and Bigstone Cree Nation.
- Strategic Transportation Infrastructure Program provided rural and smaller urban municipalities $37.5 million for 69 projects to develop and maintain local bridges, airports, roads and for other priority initiatives.
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- Alberta Broadband Strategy was established to make reliable, affordable, high-speed internet a reality in rural, remote and Indigenous communities through a $390 million investment over the next 4 years.
- Alberta’s Provincial Construction Program outlined major highway, bridge and water management projects scheduled over the next 3 years.
- Building Forward: Alberta’s 20-Year Strategic Capital Plan took a provincewide view to help government navigate through challenges and opportunities over the next 2 decades and ensure the right infrastructure is in place to support Alberta’s future.
- First Nations Regional Drinking Water Tie-in Program committed $100 million over 6 years to provide 14 Indigenous communities with reliable access to clean drinking water.
- Irrigation expansion and modernization partnership with the Canada Infrastructure Bank and 9 irrigation districts was formed to invest $933 million between 2021 and 2028 to help expand primary agriculture production and grow the agri-food and value-added processing industries.
- Strategic Transportation Infrastructure Program committed $103.4 million over 3 years, with $31.5 million allocated in 2022-23 for rural and smaller urban municipalities to develop and maintain local bridges, airports, roads and for other priority initiatives.
- Strengthening an economic corridor in Oyen through a signed agreement and $1 million funding partnership to explore whether the rail line between Oyen and Lyalta should be restored.
Strategic direction 2: Rural business supports and entrepreneurship
Increase access to supports for entrepreneurship and small business capacity to help grow a culture of innovation and entrepreneurship across rural Alberta.
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- Cultivating economic growth in rural Alberta through the Investment and Growth Fund by providing a $1.1 million deal-closing incentive to attract a hemp processing plant in Elk Point that will create about 33 permanent full-time and 50 temporary jobs.
- Growing the benefits of digital tech in agriculture by providing the University of Calgary $1.2 million over 3 years to research how technologies like data and robotics can advance innovation in Alberta’s ag industry.
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- Alberta Innovates Scaleup and Growth Accelerator Program supported more than 400 Alberta entrepreneurs to take their businesses to new heights and enter the global market.
- Canada-Alberta Job Grant invested $2.2 million for employers to provide training opportunities for 1,000 employees and unemployed Albertans.
- Forest Jobs Action Plan continued to provide local forestry operators with access to a sustainable and secure fibre supply through 46 short-term timber permits and 22 permits for timber damaged by 2023 wildfires.
- Sustainable Canadian Agriculture Partnership distributed over $56 million to producers, value-added processors, grazing organizations and industry organizations to strengthen competitiveness, innovation and resiliency in the agriculture sector.
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- Alberta Advantage Immigration Program attracted and supported almost 900 skilled newcomers to help diversify the economy and create jobs through the Rural Renewal and Rural Entrepreneur Streams.
- Alberta Value-Added Wood Products Program received $2.25 million over 5 years to help small- and medium-sized value-added wood manufacturers attract investment, expand into new markets, enhance manufacturing capabilities and create jobs.
- Energy Savings for Business Program allocated $55 million to Alberta businesses for energy savings technologies to improve efficiency and reduce emissions.
- Forest tenure systems allocated 137,500 cubic metres (m3) of previously unallocated timber, including 86,000 m3 to Indigenous owned and operated companies.
- Innovation Employment Grant incentivized more than 1,300 businesses across the province to conduct research and development and qualify for non-refundable tax credits assessed at $84 million.
- Investment and Growth Fund Rural Stream invested $1.66 million to attract 3 manufacturing facility projects that created more than 350 permanent jobs and more than 100 temporary jobs.
- Made in Alberta Voluntary Labelling Program launched to help consumers identify food and beverages produced here and buy local to help boost the economy.
- Red Tape Reduction Implementation Act, 2020 amended 14 laws to save Albertans and Alberta businesses about $1.4 million, including Bee Act amendments that allow quicker responses to disease outbreaks and Irrigation District Act amendments that expedite water licence transfers.
- Results Driven Agriculture Research (RDAR) received $27.1 million to support 93 research projects on urgent and emergent topics like drought, bee health, crop disease and disease threats.
Strategic direction 3: Support for labour force and skills development
Enable skills development to enhance rural workforce capacity to support community services such as health, education and business.
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- Adding a Tourism and Hospitality Stream to the Alberta Advantage Immigration Program to help address labour gaps and challenges in the tourism and hospitality industry.
- Attracting skilled workers to protect communities by expanding the Alberta Advantage Immigration Program to include law enforcement occupations.
- Building affordable homes and stronger communities by providing nearly $66 million for more than 450 new affordable housing units and shelter beds across the province through the Affordable Housing Partnership Program.
- Expanding physician training across Alberta by investing $224.8 million to encourage more physicians to live and practice in rural settings.
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- Alberta’s Health Workforce Strategy allocated $158 million to increase the number of health professionals, expand physician training and recruit internationally educated physicians and nurses.
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- Alberta 2030: Building Skills for Jobs outlined a 10-year strategy for post-secondary education that will transform the adult learning system to focus on providing the high-quality education, skills and training needed for the province’s future.
- Alberta’s Health Workforce Strategy helped attract more than 330 new physicians and more than 7,500 regulated nurses to rural and urban areas.
- Employment Partnerships Program supported 27 Indigenous workforce development projects including training for almost 1,300 community members and job fairs to connect more than 8,700 members with potential employers.
- Public Library Grant for Skill Development in Rural Alberta allocated $200,000 to help rural public libraries strengthen services and programs to support communities in becoming resilient and sustainable.
- Rural communities attracted new doctors through the Rural Education Supplement and Integrated Doctor Experience (RESIDE) Program, which committed $6 million over 3 years to attract 20 new family physicians each year.
- Rural Health Professions Action Plan’s Internationally Educated Nursing Project attracted nurses and medical students to rural communities and promoted careers in rural health care to high school and post-secondary students.
- Stronger Foundations affordable housing strategy invested $125 million from the Affordable Housing Partnership Program to support 30 projects that create more affordable housing, shelters, seniors housing and supportive housing facilities.
- Supported agriculture labour demands through a $2.5 million federal-provincial partnership that enabled Ag for Life to improve awareness of agriculture and agri-food careers, and provide producers and processors with training and supports to recruit, hire and retain workers in the industry.
- Training and employment services provided Albertans in rural areas with on-line and remote access to training supports to help them respond to changing labour market conditions and find jobs.
- Workforce Partnership grants allocated $228,655 to 9 rural regions for Labour Market Partnership projects that support workforce development and enable more newcomers, youth, Indigenous peoples, women, mature workers and people living with a disability to participate in the workforce.
Strategic direction 4: Marketing and promoting rural tourism
Enhance rural Alberta’s reputation and capacity as a diverse tourism destination through the development of new products and experiences, helping to attract and retain talent that supports other industries.
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- Cresent Falls ready to be enjoyed again with upgrades that were part of a $12.3 million capital investment to improve visitor safety and experiences in 13 key provincial recreation sites along the David Thompson Corridor.
- Heritage Preservation Partnership Program is investing $1.7 million in matching grants and scholarships to support initiatives that preserve and interpret Alberta’s heritage.
- Lights, camera, action for film and television with an update to Alberta’s Film and Television Tax Credit program that will reduce red tape and promote more filming in rural and remote regions, in addition to the 56 productions already approved and estimated to spend $517.7 million.
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- Alberta Culture Days grants enabled Indigenous and non-profit organizations like agricultural societies to organize arts and cultural activities that attracted visitors to rural communities in September.
- Alberta Open Farm Days attracted more than 35,800 visitors to more than 130 farms where they participated in activities to learn where their food comes and spent more than $298,000 that stayed in farmers’ pockets.
- Film and Television Tax Credit offered a 30% tax credit rate for rural and remote filming for film and television productions like Heartland.
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- Tourism investment fuelled growth in rural Alberta through Travel Alberta’s Tourism Investment Program, which invested $15 million in 166 projects across 73 communities with about 75% of the projects in smaller urban and rural areas receiving 70% of the funding.
Strategic direction 5: Rural economic development capacity building
Enhance rural economic development through regional and targeted capacity building.
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- Alberta boosts funding for Indigenous businesses by increasing the Aboriginal Business Investment Fund to $30 million over 3 years for capital grants for community-owned economic development projects.
- Regional economic growth bolstered by grant program with a $3 million yearly funding commitment for the Northern and Regional Economic Development program over the next 3 years.
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- Aboriginal Business Investment Fund invested $7.5 million in Indigenous community-owned economic development projects that created more than 200 jobs for Indigenous people.
- Agriculture Service Boards across the province received $8.4 million to help 60,000 farms and ranches protect 50 million acres of land through pest management, weed control, environmental protection and soil conservation.
- Alberta Agri-Food Investment and Growth Strategy attracted $2.1 billion in new agri-food investments across the province, which included more than 100 projects in rural areas worth $702 million that created more than 1,000 in jobs.
- Alberta Agri-Processing Investment Tax Credit program helped attract 6 projects to build or expand a value-added agri-processing facility in Alberta.
- Alberta Indigenous Opportunities Corporation reported $273.5 million in loan guarantees in 2023-24, benefiting 42 Indigenous groups and representing a 55.6% increase compared to 2022-23 for natural resource, agriculture, transportation, and telecommunications projects.
- Climate Resilience Capacity Building Program offered 3 funding streams with up to $160,000 each for 49 projects in 66 municipalities and Indigenous communities.
- Northern and Regional Economic Development Program provided $7.3 million for 74 projects in communities across the province that supported regional economic growth and diversification.
- Regional Economic Development Alliances received $1.125 million in stable funding to support economic growth and diversification throughout Alberta.
- Small Community Opportunity Program provided Indigenous and small rural communities, and the non-profits they work with, $3.4 million for 43 local projects that built capacity in agriculture, small business supports and economic development.
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- Aboriginal Business Investment Fund invested $5 million to enable 14 Indigenous businesses to partially or completely fund capital costs for economic development projects that improved the socio-economic outcomes for Indigenous communities.
- Alberta Agri-Food Investment and Growth Strategy set targets to attract $1.4 billion in investment by 2024 and create 2,000 jobs in the agri-food sector.
- Alberta Agri-Processing Investment Tax Credit program was established to make the province a preferred destination for value-added ag and food corporations that invest at least $10 million to build or expand a processing facility in Alberta.
- Alberta Indigenous Opportunities Corporation provided $250 million in loan guarantees to support a landmark deal between 23 First Nations and Métis communities participating in a pipeline investment project.
- Climate Resilience Capacity Building Program provided $4.5 million for municipalities and Indigenous communities to assess adaptation measures and create climate resilience plans.
- Northern and Regional Economic Development Program invested $3.2 million in 70 projects that helped deliver business supports, increased labour force attraction and retention, enhanced tourism and built capacity for economic growth.
- Rural economic capacity building grants provided $2.1 million to advance regional and targeted initiatives that would lead to sustainable rural economic development and diversification.
- Veterinary Medicine Program at the University of Calgary received $59 million in capital funding over 3 years to double the number of seats in the program and more than $9 million for rural training to address a critical shortage of large animal veterinarians in rural Alberta.
How we got here
We held a series of engagement sessions with rural stakeholders and Indigenous communities from Winter 2021 to Spring 2022. Their input helped inform a plan to address the unique challenges and opportunities of economic development in rural Alberta.
Key aspects of the draft Economic Development in Rural Alberta Plan were presented to rural Albertans for further discussion and input during engagement sessions held in Summer 2022.
Next steps
The Economic Development in Rural Alberta Plan outlines commitments that will guide economic growth and diversification until 2028. A final impact report will be released at that time.
Contact
Connect with the 310-FARM:
Hours: 8:15 am to 4:30 pm (open Monday to Friday, closed statutory holidays)
Toll free: 310-FARM (310-3276) (in Alberta)
Phone: 403-742-7901 (outside Alberta)
Email: 310-farm@gov.ab.ca
News
- Building up the rural Alberta economy (December 14, 2022)