How much funding can be received?

Funds up to 90% of admissible expenses.

What is the deadline to apply?

The deadline to apply is not specified.

Who are the financial supporters of the Farmland Financing Program — Up to 150 Acres?

Farmland Financing Program — Up to 150 Acres is funded by Government of Prince Edward Island, Finance PEI

What are Farmland Financing Program — Up to 150 Acres's eligibility criterias?

Any farmer that has 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. You must be a Canadian citizen and a permanent resident of PEI.

Farmland Financing Program — Up to 150 Acres

Last Update: January 24, 2025

Charlottetown, PE

Loan to purchase farm land in Prince Edward Island

Farmland Financing Program — Up to 150 Acres at a glance

Eligible Funding

Up to 90% of project cost

Timeline

Continuous Intakes

Financing Type

Loans and Capital investments

Eligible Industries

Agriculture, forestry, fishing and hunting

Grant Providers

Government of Prince Edward Island
Finance PEI

Status

Open

Overview of the Farmland Financing Program — Up to 150 Acres program

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.

Financing terms and conditions

The Farmland Financing Program provides structured loan options to support the purchase of farmland in Prince Edward Island. The financing is tailored to different acreage needs, offering distinct modalities for loan repayment and interest rates.

Term loan to finance 90% - 100% of the purchase price for up to 150 acres of farmland, at a fixed interest rate of 6% with blended payments over a five-year term.
Term loan to finance up to 80% of the purchase price for a maximum of 450 acres of farmland, with options for interest-only payments at the prevailing rate or fixed interest payments at 6% over five years.
Financing applies strictly to farmland, excluding woodland, barns, or other structures and equipment.

Eligible projects & activities

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.

Examples of admissible projects:

$ 685,000

Purchase 120 acres for expanding an organic vegetable farm

$ 856,000

Purchase 150 acres to expand a family-owned vineyard

$ 574,000

Acquisition of 100 acres to develop a dairy farm

$ 456,000

Purchase of 80 acres for a community-supported agriculture initiative

$ 735,000

Acquire 130 acres to establish a community farm and education centre

$ 516,000

Purchase 90 acres to develop a sustainable greenhouse farm

Eligibility criteria of the Farmland Financing Program — Up to 150 Acres program

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

Eligibility criteria of the Farmland Financing Program — Up to 150 Acres program

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 to the Farmland Financing Program — Up to 150 Acres program

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.

Contact Government of Prince Edward Island

902-368-6200

Apply to this program

Funding for short-term applied research in Prince Edward Island agriculture