New Land Purchase Program
The Agricultural Development Board can purchase eligible land and lease it to an applicant for a period of up to six years. The applicant agrees to purchase the land at the end of the lease.
The proposed land has not had any agricultural crop produced or harvested during the previous 2 years, excluding unimproved forage land.
The business plan must show reasonable chances of viability and must demonstrate that a demand exists for the product(s);
The applicant must have acceptable agricultural knowledge and business skills, and an acceptable credit history;
The project must fit with the province’s sector strategies (in terms of impact on agricultural land, jobs, export sales, markets, etc.);
Acceptable security must be provided for the proposed financing; and
The applicant must show an acceptable amount of equity in the business.
Land is purchased by the Agricultural Development Board and then leased for 6 years;
Financing of land up to 100% of enhanced value;
Approved land development work can be part of the lease.
During years 1 and 2, annual lease payments are deferred (based on the equivalent of the annual provincial lending rate and the lease amount).
Beginning in year 3, annual lease payments made at the beginning of each year; and
Client agrees to purchase the land from ADB at the end of 6 years