Farmland Financing Program — Up to 450 Acres
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.
Overview
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%.
At a glance
Funding available
- Reduce environmental footprint
- Up to 90% of project cost
Eligible candidates
- All industries
- Prince Edward Island
- Sole proprietorship
- For-profit business
- $ 15,000 minimum revenue
- All organization sizes
- Rural or Northern Residents
- Canadians
- Startups
Next Steps
Activities funded
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.
Eligibility
Who is eligible?
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.Who is not eligible
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
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%.
Eligible geographic areas
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.
Selection 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
How to apply
- 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.
Additional information
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.