Funding Resources

The Department of Agriculture, Aquaculture and Fisheries provides repayable loans and loan guarantees to promote development of the agriculture sector. New entrants, defined as someone who has owned a farm for five years or less, are eligible for lower interest rates and equity requirements.

Eligible activities include:

• Purchase an existing farm 
• Start a new farm
• Purchase shares in a farming operation 
• Purchase land for farming 
• Develop land for farming
• Working capital requirements 

Refinancing or repaying debt is not an eligible activity for a loan or loan guarantee. Applications must include a business plan which includes the following:

Description of business and project.

• Financial information – minimum of three years of projected income statements and cash flow statements and previous three years financial statements or income tax returns (if existing operation). 
• Description of management plan (how business will be operated) and management’s qualifications including education and work experience. 
• Marketing plan (to whom and how products will be sold); and 
• Productions details (three[SAF(1] -year historical summary of actuals and three-year summary of projected production including assumptions). 

Acceptable security must be provided for the loan or loan guarantee. The applicant must demonstrate a minimum 10% (new entrants 5%) equity into the project. The department may require a higher equity level based on the risk of the project.

There is no application fee to apply for a loan or loan guarantee.

The Interest rate for loans to new entrants is the provincial interest rate on loans plus one percent.

The interest rate for all other loans is determined by the term of the loan, amount borrowed, and equity contributed to the project.

Repayment terms are matched to the cash flow of the project as supported by the business plan. Options include interest only payments or principal and interest payments.

A loan guarantee fee of 1.5% of the amount guaranteed is payable at the beginning of each year the guarantee is in place.

There are numerous financial assistance programs offered by the Department of Agriculture, Aquaculture and Fisheries. Some are joint federal/provincial programs, some are federal programs administered by the province and some are provincial initiatives only.

Additional resources may be available for new entrants under some of the programs administered by the Department of Agriculture, Aquaculture and Fisheries.

These programs are subject to change depending on federal-provincial agreements and changes to annual budgets.

Many businesses fail, especially in the first five years of operation, due to being under-capitalized or not having enough financial resources. It is essential that financial forecasts be made as realistic as possible. It is highly recommended to seek out professionals to help with this.

Other potential financial resources include:

• Commercial banks.
• Opportunities New Brunswick
• Agriculture Development Loan Programs administered by the Department of Agriculture, Aquaculture and Fisheries.
• Canadian Agriculture Loan Act
• Atlantic Canada Opportunities Agency.
• Export Development Canada.
• Farm Credit Canada; Farm Credit Canada Young Farmer Loan
• The New Brunswick Small Business Investor Tax Credit
• Grants/assistance offered by both levels of government – examples include:
  • Canada Summer Jobs – Service Canada (federal government)
  • Work Ability Program – Department of Post-Secondary Education, Training and Labour – (Government of New Brunswick)
  • Workforce Expansion Program – Department of Post-Secondary Education, Training and Labour.

There are many services and publications provided by the Department of Agriculture, Aquaculture and Fisheries. These include:

• Free consultations with extension specialists;
• A wide range of technical bulletins online and in the staff offices;
• Annual reports of the Department of Agriculture, Aquaculture and Fisheries;
• Agricultural statistics and more;
• Veterinarian and veterinarian lab services provided for a fee; and
• Ag Pal. This program facilitates finding provincial and federal agricultural programs.

New Brunswick, through the Department of Agriculture, Aquaculture and Fisheries, is one of the few remaining provinces that offer veterinary services to agricultural producers. These services can be broken down into field services, clinic services and veterinary laboratory services.

The department has field veterinarians throughout the province, an equine specialist, a poultry specialist and two lab pathologists. Field Veterinary Services provides on farm and emergency call services for the livestock sector 24 hours a day, seven days a week for a fee that the producer pays. Veterinarian services are offered at a published discount rate for all agricultural producers regardless of location. Horse owners are also serviced by New Brunswick veterinarians but pay higher levels than food animal or fur bearing producers.

These services can be obtained from the regional department offices located in Moncton, Fredericton, Sussex, Grand Falls, Bathurst and Wicklow. (see office locations for contact information)