The federal government says the new 166 million dollar Agricultural Clean Technology Program is open to applicants.
The new program provides farmers and agri-businesses with access to funding to help develop and adopt the latest clean technologies to reduce greenhouse gas emissions.
It focuses on 3 priorities, green energy and energy efficiency, precision agriculture and the bioeconomy.
The program will allocate 50 million dollars specifically for the purchase of more efficient grain dryers.
Another 10 million dollars will be allocated to powering farms with clean energy and moving off diesel.
Agriculture Canada estimates the program could reduce up to one megaton of greenhouse gases from the atmosphere.
Applications will be accepted until funding has been fully committed.
The research and innovation stream supports pre-market innovation including research and commercialization of agricultural clean technologies.
In the federal budget, Ottawa also announced its intention to return a portion of the carbon tax this year.
It is estimated farmers would receive 100 million dollars in the first year.
Returns in future years will be based on proceeds from the tax collected in the previous year.
Further details will be announced later this year.