Farmland Financing Program — Up to 150 Acres
Charlottetown, PE, Canada
Loan to purchase farm land in Prince Edward Island
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|maxCount
- grant_single|projectCostPercent
grant_single|deadlines
- grant_single|timelineUnspecified
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Finance PEI
- Government of Prince Edward Island
grant_single|status
grant_card_status|open
grant_single_labels|preview
Term loan to finance up to 100% of the purchase of a maximum of 150 acres of farmland at a fixed interest rate of 6% over a five-year term.
grant_single_labels|projects
The Farmland Financing grant supports specific activities aimed at helping eligible farmers with land purchasing. The focus is on farmland acquisitions to facilitate new and expanding agricultural operations.
- Purchase of up to 150 acres of farmland with up to 90% - 100% financing at a fixed interest rate for a five-year term.
- Purchase of up to 450 acres of farmland with either interest-only payments or blended principal and interest payments at a fixed rate over five years.
grant_single|admissibleProjectsExample
$685,000
Vancouver
Purchase 120 acres for expanding an organic vegetable farm
$856,000
Kelowna
Purchase 150 acres to expand a family-owned vineyard
$574,000
Calgary
Acquisition of 100 acres to develop a dairy farm
$456,000
Toronto
Purchase of 80 acres for a community-supported agriculture initiative
$735,000
Ottawa
Acquire 130 acres to establish a community farm and education centre
$516,000
Quebec City
Purchase 90 acres to develop a sustainable greenhouse farm
grant_single_labels|admissibility
The company eligibility criteria for this grant are as follows:
- Any farmer with an acceptable combination of five years post-secondary education in agriculture and/or work experience in a farming operation.
- The farming operation must be a viable business venture with annual sales of at least $15,000 from agricultural commodities, supported by Income Tax Returns.
- For new entrants, cash flow projections must indicate that the required annual sales of $15,000 from agricultural commodities will be met and adequate debt servicing to support the proposed land purchase.
- You must have a valid Environmental Farm Plan and Soil Conservation Plan for the farmland being purchased.
- The land being financed must be available to be taken as a first charge against the loan.
- The Shareholder(s) must provide a Personal Guarantee.
- You must be a Canadian citizen and a permanent resident of PEI.
grant_eligibility_criteria|who_can_apply
The Farmland Financing program is targeted at eligible farmers in Prince Edward Island, specifically those involved in new farming ventures, expansions, or farmland succession. It focuses on providing financial support for purchasing farmland under certain conditions.
- Eligible for farmers with a combination of five years' post-secondary education or work experience in agriculture.
- Supports both expansion/succession and new entrant farmers in creating viable business operations in PEI.
grant_eligibility_criteria|who_cannot_apply
Some types of companies that are not eligible for this grant include:
- Companies involved in illegal activities
- Non-profit organizations
- Companies outside the geographical scope specified in the grant
grant_eligibility_criteria|eligible_expenses
- Salaries of personnel directly involved in the project
- Costs of materials and supplies
- Travel and accommodation expenses directly related to the project
- Consultant fees related to the project
grant_eligibility_criteria|zone
This grant is specifically for farmers who are Canadian citizens and permanent residents of Prince Edward Island. The funding is managed by Finance PEI, indicating its focus on supporting farmers in this particular province.
- Prince Edward Island
grant_single_labels|register
Step 1: Determine Eligibility
- Ensure you have the required five years of post-secondary education and/or work experience in agriculture.
- Verify that your farming operation meets the viability criteria - annual sales of at least $15,000 or cash flow projections for new entrants.
- Ensure you have a valid Environmental Farm Plan and Soil Conservation Plan.
- Confirm Canadian citizenship and permanent residency in PEI.
- Ensure the land can be taken as a first charge against the loan.
- Prepare a Personal Guarantee.
Step 2: Prepare Application
- Complete the Application for Financial Assistance form.
- Prepare a Business Plan with 3 years of cash flow projections and historical financial statements (if applicable) in collaboration with a Chartered Accountant.
- Obtain an Appraisal by an Accredited Appraiser.
Step 3: Submit Application
- Submit the completed application and all supporting documents to an Account Manager with Finance PEI.
- Participate in an interview with the Account Manager to discuss the business proposal and next steps for eligibility determination.
grant_single_labels|contact
902-368-6200
Apply to this program
Farmland Financing Opportunity in Prince Edward Island
The Farmland Financing program in Prince Edward Island offers eligible farmers support in acquiring farmland through two distinct financing streams. This initiative aims to facilitate farm expansion, succession, and aid new entrants in the agricultural sector by providing favorable loan terms.
Unlocking Agricultural Potential with PEI's Farmland Financing Program
Prince Edward Island (PEI) is home to a vibrant agricultural community, and the provincial government is committed to sustaining and expanding this vital sector. One of the critical initiatives supporting this goal is the Farmland Financing program offered by Finance PEI. This program is designed to provide financial assistance to eligible farmers, enabling them to acquire farmland, ensure successful succession planning, or expand their operations effectively. The program offers two primary financing streams tailored to meet the diverse needs of farmers in PEI.
The first financing stream offers a term loan that covers up to 90% to 100% of the purchase price for a maximum of 150 acres of farmland. This stream is particularly beneficial for farmers looking to expand their landholdings incrementally or those who are newly entering the market. The term loan is offered at a fixed interest rate of 6% over a five-year period, with the payments structured to blend both principal and interest. This financial model provides predictability and stability, allowing farmers to manage their finances with confidence while investing in their future.
Alternatively, the second financing stream is more suited for those planning on acquiring larger expanses of farmland. This loan provides up to 80% of the purchase price for a maximum of 450 acres. Farmers who choose this option can benefit from either a fixed interest rate of 6% with blended principal and interest payments, or they can opt for interest-only payments for five years at the prevailing interest rate. This latter choice offers flexibility in how repayments are managed, allowing farmers to focus on immediate operational needs without the pressure of significant upfront capital repayments.
A critical feature of the Farmland Financing program is its focus on farmland alone. This means that funding is aimed squarely at purchasing land rather than facilities or equipment like barns or other structures. This focus helps ensure that the program directly enhances land acquisition and ownership, which are fundamental steps in establishing and growing a farming enterprise. However, eligibility aside from Canadian citizenship and PEI residency, mandates that the land being financed is able to be taken as a first charge against the loan, and a Personal Guarantee must also be provided by the Shareholder(s).
The program also serves as a robust support mechanism for new entrants into the agricultural industry. Aspiring farmers are given the opportunity to generate capital funding through favorable loans that enable them to start their own farming operations with lower financial barriers to entry. By requiring new entrants to demonstrate adequate cash flow projections and potential annual sales, the program ensures that the assisted ventures are viable and sustainable over the long-term.
Furthermore, the Farmland Financing initiative is a vital component of a broader commitment by the PEI government to sustain agricultural activities that are environmentally sound and innovative. By requiring an Environmental Farm Plan and Soil Conservation Plan, the program embeds sustainability into its financing criteria, ensuring that the land is used responsibly and enhances the province's environmental commitments.
Farmers interested in applying must compile a comprehensive application, which includes a business plan, cash flow projections, and if applicable, historical financial statements prepared by a qualified accountant. An appraisal by an Accredited Appraiser is also needed to demonstrate the value of the land. These rigorous documentation requirements help ensure that the investment is sound and that Finance PEI can offer backed support that aligns with both economic and environmental stewardship goals.
For farmers navigating the application process, Finance PEI provides robust support through its Account Managers, who conduct interviews and guide applicants through determining their eligibility. The combined financial support and advisory services make it a comprehensive program aimed at fostering long-term success in the agricultural sector of Prince Edward Island. As the island continues to be one of Canada's key agricultural hubs, programs like Farmland Financing are essential in propelling forward sustainable agricultural growth and supporting the lifeblood of PEI's rural economy.