New Entrant Farmer Loan Program
The Agricultural Development Board can provide 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 such as Farm Credit Canada and other financial institutions.
The applicant must have an acceptable combination of 6 years of post-secondary education and work experience on a farming operation.
The applicant cannot own or have owned a farm, unless it was purchased within the last 12 months.
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.
Acceptable security must be provided for the proposed financing.
Loans of up to 100% of the appraised value of security, to a maximum amount of $750,000;
Amortized up to 20 years at provincial lending rate; and
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).