How much funding can be received?

<p>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%.</p>

grant_single_labels|terms_and_conditions

The Farmland Financing Program offers two distinct financing modalities for the purchase of farmland in PEI. Various financing options are designed to cater to the specific needs of new and expanding farmers, as well as those involved in farmland succession.

A term loan to finance up to 90% - 100% of the purchase price for a maximum of 150 acres of farmland, with a fixed interest rate of 6% over a five-year term, including blended principal and interest payments.
A term loan to finance up to 80% of the purchase price for a maximum of 450 acres of farmland, offering either interest-only payments for five years at the prevailing interest rate or a fixed interest rate of 6% over a five-year term with blended principal and interest payments.

grant_single_labels|projects

The grant supports the financing of farmland acquisitions for Canadian farmers, both new entrants, and those expanding or involved in succession within Prince Edward Island. Eligible activities focus on purchasing farmland, facilitating succession planning, and supporting business expansion for sustainable agricultural enterprises.

Financing the purchase of up to 150 acres of farmland at a fixed interest rate.
Financing the purchase of up to 450 acres of farmland with interest-only or blended payment options over five years.

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

This grant is available to farmers who are permanent residents of Prince Edward Island (PEI), ensuring that the funding supports local agricultural development.

Farmers who are permanent residents of Prince Edward Island, Canada.

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.