Provincial Measures Specifically Targeting Young and Beginning Farmers and Farm Transfers

 

  

 

Alberta

Alberta Farm Loan Program

Alberta Farm Loan Program (AFLP) provides the financing needed to start, develop, and grow farming operations. The maximum loan to an individual or any group of connected individuals or companies is $5 million.

Beginning Farmers Incentive

The Beginning Farmer Incentive offers an interest rate reduction of 1.5% for the first five years of the AFLP loan and is available to any qualifying individual with a net worth of $500,000 or less at the time of application.

The maximum lifetime loan amount that can receive an incentive is $500,000 per individual.

Value-Added and Agribusiness Program

 

The Value-Added & Agribusiness Program provides enterprises with suitable financing to start, develop and grow their businesses.

 

The maximum loan to an individual or any group of connected individuals or companies is $5 million.

Capital Sourcing Program

 

The Capital Sourcing Program encourages the expansion of agriculture, agri-business and small business enterprises in Alberta by making it convenient for business owners to find the capital they need through other Lenders.

The Agriculture Financial Services Corporation works with other financial institutions that are able to provide financial support to business owners in order to ensure that our clients get the capital they need to develop or expand their business.

Manitoba 

Bridging Generations Initiative

 

The Bridging Generations Initiative (BGI) provides young farmers with financial incentives, valuable training opportunities, and customized terms and payment options.

Flexible Financing

The BGI offers flexible financing to young farmers to assist them through the critical purchase and start-up period of farm operations.

 

 

Under the BGI program, a young farmer aged 18 to 39 years of age can opt for either: 90% financing, significantly reducing the down payment or 5 years of interest-only payments, which eases the young farmer’s cash flow pressures while an enterprise is being established.

Young Farmer Rebate

 

As a component of the BGI, the Young Farmer Rebate (YFR) assists young, beginning and expanding farmers with limited equity to develop or expand their farming operations.

As an eligible young farmer, you can receive a 2% rebate on the first $150,000 of principal for the first five years of an MASC loan (lifetime maximum rebate of $15,000).

Young Farmer Crop Plan Credit

 

The Young Farmer Crop Plan Credit is designed to assist young and beginning farmers with the costs of AgriInsurance.

 

The program provides a one-time premium subsidy of $300 to young farmers who are enrolled in AgriInsurance for the first time. Receiving the credit is contingent on preparing a cropping plan.

Québec 

Subvention à l’établissement  (Establishment Grant)

La subvention à l’établissement is available to young and beginning farmers to encourage business management training in agriculture.

The amount awarded may vary from $20,000 to $50,000, depending on the recipient’s level of training.

Subvention au démarrage – (Start-up Grant)

This grant is intended for businesses operating on a part-time basis. It is designed to encourage training.

A grant from $10,000 to $25,000 is offered.

Sécuri-Taux établissement (Protection Against Higher Interest Rates)

The Sécuri-Taux établissement ensures protection against interest rate hikes.

La Financière agricole reimburses the business of all interest amounts that exceed a fixed rate as determined by the program, for the first five years after the establishment of the business. The assistance applies to the first $500,000 of a loan.

La Financière agricole, une porte d’entrée aux produits du FIRA

 

FIRA is a $75 million fund for youth who want to start a new farm or transfer a farm outside the family. With FIRA, young farmers can more easily access property and have more cash during the startup phase.

New Brunswick 

New Entrant Farmer Loan Program

 

 

 

Provides financial assistance, in the form of loans, to persons entering into the agriculture sector. The program is designed to assist in the purchase of a farm and can complement other sources of lending.

 

 

 

The applicant must have an acceptable combination of 6 years of post-secondary education and work experience on a farming operation.

Loans of up to 100% of the appraised value of security, to a maximum amount of $750,000 are available; Amortized up to 20 years at provincial lending rate; and payments:

During years 1 to 4– interest only
Year 5 to end of loan – blended payments of interest and principal
During first 4 years of loan, New Entrant client may apply for additional loan for expansion or improvement (not exceeding the maximum amount of $750,000)

Nova Scotia 

FarmNEXT

FarmNEXT encourages and supports new farmers to begin farming in Nova Scotia. Program funds are intended to reduce the loan principal to provide a stronger equity position for the farm business in the first year of operation.

 

This program consists of two categories.

The program is available to Beginning farmers who are 19 years of age or older.

Under both categories, applicants must be borrowing money for the purpose of purchasing farm assets and developing a farm unit.

Beginning farmers will receive coaching in business planning and ongoing farm financial management advice from specialists of Industry Development and Business Services Branch of the Department of Agriculture.

a)     Start-up Business Category

This category includes applicants purchasing a farm from an “arms-length” vendor or undertaking a pure start-up farm business.

Under the Start-Up Farm Business Category, benefits paid under this program shall not exceed the lessor of:

  • Projected calculation of four years of eligible interest.
  • $30,000 maximum benefit.

b)    Farm Succession

This category includes applicants that are farm succession candidates. The intention of this category is to assist a farm enterprise on one occasion.

Farm Succession applicants include transfers that are “non-arm’s length” in nature as well as “arm’s length” transfers for established businesses.

Under this category, benefits paid shall not exceed the lessor of:

  • Projected calculation of 2 years eligible interest.
  • $20,000 maximum benefit.
Newfoundland and Labrador 

New Farm Investment Program (cost-shared under Growing Forward)

 

The objectives of the New Farm Investment Program are to address the unique challenges faced by new entrants in the Newfoundland and Labrador agriculture industry, to help ensure the development of under-utilized agricultural resources, encourage the establishment of new farm businesses, and to enhance the competitiveness of the sector.

Investments are made in the following priority areas: on-farm infrastructure including facility construction and equipment purchase required to establish farm operations that will enhance the competitiveness and innovation of new entrants, and to enhance access to capital; development and implementation of mentoring programs for beginning farmers; succession plans to aid in the transition of existing agricultural operations to new ownership; and funding for professional services, such as accountants, lawyers, etc. required to develop a comprehensive succession plan.

 

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