Today, Finance PEI launched the new Farmland Financing Program, aimed to provide financing to new and expanding Island farmers seeking to purchase farmland in Prince Edward Island, as well as farmers involved in farmland succession, says Innovation and Advanced Learning Minister Allen Roach.
“This unique new program will get results for our hard-working Island farmers, and ensure our young farmers have the opportunity and resources to participate in our agricultural economy,” said Minister Roach. “Supporting agriculture is a strategic way to encourage entrepreneurship, create rural employment and boost exports.”
“By making capital for farming more accessible, this program fulfills government’s pledge to help new entrants to agriculture and to make it easier for those retiring or leaving the industry to pass on their lands to new farmers,” says Agriculture and Forestry Minister of George Webster.
The new program was designed based on industry advice on how best to help new entrants to farming. Currently, new and young farmers face many obstacles when starting out in the agricultural business. This new program will help to remove some of the financial barriers for new farmers and will allow others the opportunity to expand their operations.
The new Farmland Financing Program, which will be available in addition to the existing programs, provides financing of between 80 percent and 100 percent of the total cost of farmland, reducing the equity component of the loan to a manageable level. The program will allow farmers to use equity for other purposes on the farm, including investing in other farm assets.
The new program has two alternatives available to Prince Edward Island Farmers (see attached backgrounder for full program details):
1. Term loans, between 90% and 100% leveraged financing for the purchase of farmland, to a maximum of 150 acres
2. Term loans, up to 80% leveraged financing for the purchase of farmland, to a maximum of 450 acres
For more information on the program and how to apply, visit http://financepei.ca/index.php?number=1052714&lang=E.