Farmland Financing Program — Up to 450 Acres
PE, Canada
Loan to purchase farmland in Prince Edward Island (PEI)
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
- grant_single|allIndustries
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 80% of the purchase price of a maximum of 450 acres of farmland with either interest-only payments or a fixed interest rate of 6%.
grant_single_labels|projects
This financing program is designed specifically for farmers based in Prince Edward Island. It ensures that the funds are utilized to support and develop the agricultural sector within this region.
- Farmers must be permanent residents of Prince Edward Island.
grant_single|admissibleProjectsExample
$4,000,000
Purchasing 300 acres of farmland for vegetable cultivation
$6,000,000
Acquisition of 450 acres of farmland for organic farming
$1,800,000
Acquisition of 150 acres of arable farmland PE
$4,800,000
Purchase 350 acres of farmland for rotational grazing
$3,200,000
Buy 200 acres of farmland for mixed farming
$1,350,000
Acquiring 100 acres of farmland for berry farming
grant_single_labels|admissibility
Eligibility for this farmland financing grant requires meeting several specific criteria based on experience, business viability, and location.
- Farmers must have an acceptable combination of five years post-secondary education in agriculture and/or work experience in a farming operation.
- For expansion or succession, the farming operation must be a viable business with annual sales of at least $15,000 from agricultural commodities, supported by Income Tax Returns.
- New entrants must provide cash flow projections indicating the ability to meet required annual sales of $15,000 from agricultural commodities and adequate debt servicing capacity for the proposed land purchase.
- Applicants 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.
- Shareholder(s) must provide a Personal Guarantee.
- Applicants must be Canadian citizens and permanent residents of PEI.
grant_eligibility_criteria|who_can_apply
Eligible farmers on Prince Edward Island (PEI), who are either new or expanding their operations, or involved in farmland succession, can apply for this financing program. Applicants must demonstrate a blend of formal education and experience in agriculture, maintain a viable business operation or have convincing cash flow projections indicating future viability, and meet additional requirements such as having valid environmental and soil conservation plans. Applicants must be Canadian citizens and permanent residents of PEI.
grant_eligibility_criteria|who_cannot_apply
There are specific types of companies that are not eligible for this grant. Companies involved in the tobacco, alcohol, gambling, or adult entertainment industries are not eligible for this grant.
- Tobacco industry
- Alcohol industry
- Gambling industry
- Adult entertainment industry
grant_eligibility_criteria|eligible_expenses
This program offers financing options tailored specifically for purchasing farmland in PEI. The eligible activities are centered around land acquisition for both new and expanding farming enterprises and farmland succession.
- Financing the purchase of up to 150 acres of farmland with a term loan covering 90% - 100% of the purchase price, at a fixed interest rate of 6%.
- Financing the purchase of up to 450 acres of farmland with a term loan covering 80% of the purchase price, with flexible repayment options including interest-only payments or a fixed interest rate of 6%.
grant_eligibility_criteria|zone
The funding is strictly designated for the purchase of farmland.
- Term loan financing for up to 90% - 100% of the purchase price of a maximum of 150 acres of farmland.
- Term loan financing for up to 80% of the purchase price of a maximum of 450 acres of farmland.
grant_single_labels|criteria
The evaluation and selection criteria for the Farmland Financing grant are based on several factors including educational and work experience requirements, financial viability of the farming operation, and compliance with environmental plans.
- Acceptable combination of five years post-secondary education in agriculture and/or work experience in a farming operation
- Expansion/Succession: Annual sales of at least $15,000 from agricultural commodities, supported by Income Tax Returns
- New Entrant: Cash flow projections indicating required annual sales of $15,000 from agricultural commodities and adequate debt servicing to support the proposed land purchase
- Valid Environmental Farm Plan and Soil Conservation Plan for the farmland being purchased
- Farmland must be available to be taken as a first charge against the loan
- Shareholder(s) must provide a Personal Guarantee
- Applicant must be a Canadian citizen and a permanent resident of PEI
grant_single_labels|register
- Step 1: Eligibility Verification
- Ensure you meet all the eligibility criteria for Farmland Financing, including educational, business, and residency requirements.
- Confirm you possess a valid Environmental Farm Plan and Soil Conservation Plan for the farmland you intend to purchase.
- Step 2: Prepare Financial Documentation
- Prepare a comprehensive Business Plan, led by a qualified Chartered Accountant, to include 3 years of cash flow projections and 3 years of historical financial statements, if applicable.
- Obtain an appraisal of the farmland from an Accredited Appraiser to include with your application.
- Step 3: Complete Application for Financial Assistance
- Download or obtain the Application for Financial Assistance form from Finance PEI.
- Fill out all sections of the application form accurately.
- Step 4: Submit Application
- Compile all required documents including the completed application form, business plan, and property appraisal.
- Submit the entire application package to an Account Manager at Finance PEI.
- Step 5: Application Review
- Attend an interview with an Account Manager at Finance PEI to discuss your business proposal.
- Receive guidance on the next steps regarding your application’s review and eligibility determination.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- Farmers must ensure they have a valid Environmental Farm Plan and Soil Conservation Plan to qualify.
- The farmland being financed must be available to be taken as a first charge against the loan.
- Shareholder(s) are required to provide a Personal Guarantee.
- The applicant must be a Canadian citizen and a permanent resident of PEI.
Apply to this program
Supporting Farmland Expansion and Succession in PEI
The Farmland Financing program is a targeted initiative aimed at supporting eligible farmers in Prince Edward Island with financial assistance to purchase farmland. With structured loan options, this program facilitates growth and transition within the agricultural community.
Exploring the Farmland Financing Program in Detail
The Farmland Financing program, spearheaded by Finance PEI, is a pivotal opportunity for farmers in Prince Edward Island, offering a robust financial framework for expanding farming operations or aiding in smooth generational transitions. By providing accessible, affordable loans, this initiative helps farmers overcome financial barriers associated with purchasing additional farmland, enabling them to focus on growth and sustainability.
The program is structured into two distinct financing streams: the first offers a term loan for up to 90%-100% of the purchase price for a maximum of 150 acres, fixed at an interest rate of 6% over a five-year term with blended payments. The second stream provides financing for up to 80% of the purchase price for a larger expanse, up to 450 acres, with the option between interest-only payments over five years at a prevailing rate, or a comparable 6% fixed interest rate with blended payments. This flexible structuring ensures that the financing options can cater to different farming landscapes and financial needs, thus widening access to these essential resources.
Key to this financial aid package is its strict earmarking for farmland, excluding woodlands, barns, or other structures which are commonly associated with farming operations. Thus, recipients can bolster their primary agricultural activities without diverting funds to secondary investments. Supported by a $10 million investment portfolio, this program highlights a significant capital commitment to sustainable agriculture in PEI.
Eligibility for the Farmland Financing program is rooted in a blend of educational and experiential prerequisites, ensuring that applicants have substantial agricultural acumen. Applicants need to exhibit a meaningful involvement in farming through either education or a five-year work history in the industry. Additionally, emerging new entrants must present viable cash flow projections that illustrate their capacity to meet sales thresholds and debt obligations, ensuring that financial responsibility underpins the loan disbursement process.
A vital component in the application process is the submission of a comprehensive business plan. This plan must be drafted by a qualified Chartered Accountant and include forecasts and historical financial data where applicable. By mandating such thorough documentation, the program not only checks the viability of the applicant's farming business but also instills a mindset of strategic planning and accountability.
Security is another non-negotiable pillar; applicants must have a valid Environmental Farm Plan and Soil Conservation Plan, emphasizing the program's commitment to environmentally responsible farming. Additionally, the land bought must be unobstructed for first charge against the loan, further ensuring that the financial stability of the loan is maintained.
To apply, interested farmers must carefully compile their documentation, including a business plan and land appraisal, before submitting these to a Finance PEI Account Manager. The personal interview that follows gauges project understanding and readiness, rounding off the application process.
This strategically designed program not only fuels agricultural advancement but also nurtures the future of farming on PEI by facilitating financial inclusivity and promoting responsible land stewardship. Eligible farmers are encouraged to leverage this program to enhance their productivity and sustainability, contributing positively to local economies and food security.
