Farmland Financing Program
The new Farmland Financing Program is an initiative of the Province of Prince Edward Island that is available to eligible farmers; new and expanding or those involved in farmland succession within PEI.
Finance PEI will provide two financing streams, of which a farmer is eligible to apply under only one.
- Term loan to finance up to 90% - 100% of the purchase price of a maximum of 150 acres of farmland, at a fixed interest rate of 4% over a five-year term, with blended principal and interest payments; or
- Term loan to finance up to 80% of the purchase price of a maximum of 450 acres of farmland, with either: (a) interest-only payments for a five-year period at the prevailing interest rate, or (b) a fixed interest rate of 4%, over a five-year term, with blended principal and interest payments
*Financing is eligible on farmland only; woodland, barns or other structures or equipment are excluded.
*Finance PEI has established a $10 million investment portfolio for this program.
- Any farmer that has an acceptable combination of five years post-secondary education in agriculture and/or work experience in a farming operation.
- a) Expansion/Succession - the farming operation must be a viable business venture with annual sales of at least $15,000 from agricultural commodities, supported by Income Tax Returns
b) New Entrant - cash flow projections to indicate the following: i) required annual sales of $15,000 from agricultural commodities will be met, ii) adequate debt servicing to support the proposed land purchase
- The applicant(s) must have a valid Environmental Farm Plan and Soil Conservation Plan for the farmland being purchased.
- The land being financed must be available to be taken as a first charge against the loan.
- The Shareholder(s) must provide a Personal Guarantee
- The applicant(s) must be a Canadian citizen and a permanent resident of PEI
- Complete the Application for Financial Assistance. Application to be supported by:
- Business Plan, prepared by a qualified Chartered Accountant, acceptable to Finance PEI. To include 3 years of cash flow projections and 3 years of historical financial statements (if applicable);
- Appraisal by an Accredited Appraiser;
- Loan Application Fee in the amount equal to ½ of one percent of the amount of the proposed loan
- Submit the completed application, together with the above requirements, to an Account Manager with Finance PEI, Commercial and Resource Lending. The Account Manager of Finance PEI will conduct an interview with the applicant(s) to discuss the business proposal and the next steps required to determine eligibility.
For More Information
If you have questions about eligibility requirements or the application process, please contact one of our Finance PEI Staff.
General Contact Information
|Address:||Finance PEI, Commercial and Resource Lending
98 Fitzroy Street, 2nd Floor
Charlottetown, Prince Edward Island
C1A 1R7 Canada
Telephone: (902) 368-6200
Facsimile: (902) 368-6201
Application for Financial Assistance
Statement of Personal Financial Affairs