Farmland Financing Program — Up to 150 Acres
Overview
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.
At a glance
Funding available
- Reduce the ecological footprint
- Up to 90% of project cost
- Open continuously
Eligible candidates
- Agriculture, forestry, fishing and hunting
- Charlottetown
- Prince Edward Island
- For-profit business
- Sole proprietorship
- $ 15,000 minimum revenue
- All organization sizes
- Rural or Northern Residents
- Canadians
Activities funded
The Farmland Financing Program in Prince Edward Island provides support for farmers to acquire farmland through two specific financing streams. Eligible projects focus on the purchase of farmland to expand existing operations or support new farming ventures.
- Acquisition of up to 150 acres of farmland with financing covering 90% to 100% of the purchase price at a fixed interest rate.
- Financing up to 80% of the purchase price for up to 450 acres of farmland, with options for interest-only payments or a fixed interest rate over five years.
Eligibility
Eligibility for the Farmland Financing grant is determined based on several specific criteria.
- The applicant must have an acceptable combination of five years post-secondary education in agriculture and/or work experience in a farming operation.
- For Expansion/Succession, 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 required annual sales of $15,000 from agricultural commodities will be met and adequate debt servicing to support the proposed land purchase.
- The applicant 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.
- The applicant must be a Canadian citizen and a permanent resident of Prince Edward Island (PEI).
Who is eligible?
Eligible applicants for the Farmland Financing in Prince Edward Island include farmers involved in either new farming operations, expansions, or farmland succession. They must satisfy several conditions including educational or practical experience, viability or project potential, financial stability, environmental planning, credit security, and residency requirements.Who is not eligible
This grant primarily supports eligible farmers involved in farmland acquisition. There are no explicit restrictions mentioned regarding the types of companies or industries that cannot apply, aside from the eligibility being specifically directed at farmers.
Eligible expenses
This grant supports the purchase and financing of farmland in Prince Edward Island, enabling farmers to expand or transition their agricultural operations. Eligible activities focus on financial aspects and land management specifically related to farmland acquisition.
- Acquisition of up to 150 acres of farmland with a term loan financing 90% - 100% of the purchase price.
- Purchase of up to 450 acres of farmland with a term loan financing 80% of the purchase price, featuring interest-only payments for five years or fixed-interest options.
Eligible geographic areas
Eligible farmland financing applications are limited to those located in Prince Edward Island, as specified by the funding organization.
- Prince Edward Island, Canada
Selection criteria
There are evaluation and selection criteria for this grant. The criteria include business innovation, economic impact, project feasibility, and alignment with program objectives.
- Business innovation
- Economic impact
- Project feasibility
- Alignment with program objectives
How to apply
Complete Application for Financial Assistance
- Obtain the Application for Financial Assistance form from Finance PEI.
- Fill out all sections of the application form with requested personal and financial information.
Prepare Supporting Documents
- Develop a Business Plan prepared by a qualified Chartered Accountant, acceptable to Finance PEI. Include 3 years of cash flow projections and 3 years of historical financial statements if applicable.
- Obtain an appraisal by an Accredited Appraiser of the farmland.
Submit Application
- Gather the completed application form and all supporting documents.
- Submit the package to an Account Manager at Finance PEI.
- Arrange and attend an interview with an Account Manager to discuss your business proposal and next steps.
Additional information
Here are additional relevant details for this financing program:
- Finance PEI has established a specific investment portfolio amounting to $10 million for this support.
- The financing is applicable only to the purchase of farmland; woodland, barns, or equipment are not covered.
