Farmland Financing Program — Up to 150 Acres PE Canada

Farmland Financing Program — Up to 150 Acres

Charlottetown, PE, Canada
Loan to purchase farm land in Prince Edward Island
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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
  • grant_single|allIndustries
grant_single|grantors
  • Finance PEI
  • Government of Prince Edward Island
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grant_card_status|open

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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

Eligible projects or activities for the Farmland Financing grant include financing the purchase of farmland for new and expanding farms or those involved in farmland succession within PEI.
  • Purchase of up to 150 acres of farmland with up to 90%-100% financing at a fixed interest rate of 6% over a five-year term
  • Purchase of up to 450 acres of farmland with up to 80% financing with either interest-only payments for a five-year period at the prevailing interest rate, or at a fixed interest rate of 6%, over a five-year term
grant_single|admissibleProjectsExample

$685,000

Vancouver
Purchase 120 acres for expanding an organic vegetable farm in Vancouver.

$456,000

Toronto
Purchase of 80 acres for a community-supported agriculture initiative in Toronto.

$574,000

Calgary
Acquisition of 100 acres to develop a dairy farm in Calgary.

$856,000

Kelowna
Purchase 150 acres to expand a family-owned vineyard in Kelowna.

$735,000

Ottawa
Acquire 130 acres to establish a community farm and education centre in Ottawa.

$516,000

Quebec City
Purchase 90 acres to develop a sustainable greenhouse farm in Quebec City.

grant_single_labels|admissibility

The eligibility criteria for the Farmland Financing grant include education or work experience in agriculture, viable business ventures for expansion or succession, and specific financial and residency requirements.
  • Any farmer with an acceptable combination of five years post-secondary education in agriculture and/or work experience in a farming operation.
  • 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.
  • New Entrant: Cash flow projections must indicate 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

Eligible companies for the Farmland Financing grant include farming operations that meet specific criteria. This includes both new and expanding farming businesses, as well as those involved in farmland succession within PEI.
  • New and expanding farming operations
  • Operations involved in farmland succession

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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

Eligible geographic zones for this grant are restricted to Prince Edward Island. Specifically, the land being financed must be located within PEI and able to be taken as a first charge against the loan.
  • Prince Edward Island

grant_single_labels|register

  • Step 1: Complete the Application for Financial Assistance.
  • Implications: Ensure all required information is accurately filled out in the application form.
  • Step 2: Prepare a Business Plan.
  • Implications: The Business Plan must be prepared by a qualified Chartered Accountant and include 3 years of cash flow projections and 3 years of historical financial statements (if applicable).
  • Step 3: Obtain an Appraisal.
  • Implications: Appraisal must be carried out by an Accredited Appraiser to assess the value of the farmland.
  • Step 4: Submit the completed application and all supporting documents to an Account Manager with Finance PEI.
  • Implications: Ensure all documents, including the application form, Business Plan, and Appraisal, are complete and submitted in a timely manner.
  • Step 5: Attend an interview with the Account Manager to discuss your business proposal and the next steps.
  • Implications: Be prepared to elaborate on your business plan and financial projections, and clarify any details about your application.

grant_single_labels|contact

902-368-6200
Apply to this program