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
- Government of Prince Edward Island
- Finance PEI
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
Eligible specifically to farmers based in Prince Edward Island, this financing program focuses on supporting the agricultural sector within PEI. The program's regional specificity is aligned with local resource management and economic strategies.
- Farmers operating in Prince Edward Island, Canada.
grant_single|admissibleProjectsExample
$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
grant_single_labels|admissibility
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).
grant_eligibility_criteria|who_can_apply
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.
grant_eligibility_criteria|who_cannot_apply
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.
grant_eligibility_criteria|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.
grant_eligibility_criteria|zone
The grant covers financing for farmland acquisition, excluding other types of property or assets.
- Up to 90% - 100% financing of the purchase price of a maximum of 150 acres of farmland.
- Up to 80% financing of the purchase price of a maximum of 450 acres of farmland.
grant_single_labels|register
Here are the steps to submit an application for this grant:
- Step 1: 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.
- Step 2: 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.
- Step 3: 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.
grant_single_labels|otherInfo
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.
grant_single_labels|contact
902-368-6200
Apply to this program
Empowering Farmers in Prince Edward Island with Farmland Financing
The Farmland Financing grant provides essential financial support for eligible farmers looking to either expand their operations or ensure successful farmland succession on Prince Edward Island. Through flexible loan options, this program facilitates access to crucial resources necessary for sustainable farming development.
Understanding Farmland Financing in Prince Edward Island
The Farmland Financing initiative, administered by Finance PEI, represents a steadfast commitment to sustaining and expanding agricultural activity across Prince Edward Island. This program is specifically tailored for farmers who are either entering the agricultural sector, expanding their current operations, or facilitating a smooth farm succession process. The initiative provides two distinct streams of financial assistance catering to diverse agricultural needs.Finance PEI offers a term loan under two pivotal categories: the first aims to cover a substantial portion, up to 90% to 100%, of the purchase price for no more than 150 acres of eligible farmland. This option carries a fixed interest rate of 6% over a five-year term, ensuring certainty and stability in financial planning, with blended payments that encompass both principal and interest. Alternatively, for larger land acquisitions up to 450 acres, farmers can benefit from financing up to 80% of the purchase value. Under this category, farmers have the flexibility of choosing interest-only payments for the first five years or opting for a fixed 6% interest rate, both designed to ease the financial burden during crucial initial farming stages.Eligibility for Farmland Financing hinges upon having a combination of post-secondary agricultural education or extensive work experience. Moreover, applicants must confirm their intent for farmland succession or expansion, necessitating a robust business model that includes verified annual sales of at least $15,000 from agricultural products. New farmers must present cash flow projections to demonstrate their preparedness to achieve targeted sales and manage debt effectively. Another key requirement underscores the significance of environmental responsibility, as applicants need to have valid Environmental Farm Plans and Soil Conservation Plans in place for the purchased farmland.Successful applicants must prepare a comprehensive business plan drafted by a qualified Chartered Accountant, including financial statements and projections that detail both the feasibility and the expected growth trajectory of their agricultural venture. An appraisal from an accredited appraiser is also required to validate the investment's value. These steps ensure that the land being financed is not only viable but also a strategic asset contributing to the agricultural economy of Prince Edward Island.Finance PEI underlined its commitment by establishing a $10 million investment portfolio dedicated entirely to supporting this program, reflecting the province's strategic focus on enhancing long-term agricultural sustainability and economic resilience. By offering tailored financial solutions, the Farmland Financing program demonstrates a multifaceted approach to supporting both existing and new farmers, acknowledging their pivotal role in the local economy and community development. This initiative serves as a vital economic enabler, aligning with the province's broader goals of promoting sustainable agricultural practices and ensuring farmer prosperity. By participating in this grant program, farmers can make informed decisions about expanding their operations or transitioning their farms to the next generation, thereby securing the future of agriculture in PEI.
