Island Information: Agriculture Loans

Island Information

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Agriculture Loans

Agriculture includes any person that:

carries on business, or intends to carry on business, in the province,
owns or will acquire farm assets with the loan proceeds pursuant to the Act or the regulations, and
is actively engaged in farming or intends to work actively at producing farm products.

It is the objective of the Agency to encourage increased production and types of agricultural products, as well as improved marketing facets and techniques for P.E.I. agricultural products. This may include better storage, handling, grading and packaging facilities.

Capital Loans

Capital loans are available for new and used field equipment, including trucks over 3/4 ton, for a term not exceeding 10 years. Financing will not generally exceed 80% of the fair market value of the asset being financed.

Capital loans for land and buildings, including fixed equipment and re-capitalization, are available on terms not to exceed 20 years. Total mortgage financing against property should not generally exceed 80% of the fair market value of the real property. In providing loans to finance the acquisition of dairy farms, up to 80% of the quota value may be included where the quota can be unconditionally assigned under a Letter of Direction.

Loans to finance breeding stock may be considered for a period of up to seven years.

Repayment terms on all capital loans are flexible and based on the cash flow of the farming operation.

Operating Loans

Up to 100% financing may be provided for operating loans to finance cropping expenses and livestock feeding operations.

These loans, which may be renewed/reviewed annually, are to be repaid from farm receipts.

Service Location

PEI Lending Agency

Homburg Financial Tower

Map

This information has been taken from the website:
Island Information
URL: http://www.gov.pe.ca/infopei/index.php3?number=41314

PLEASE NOTE: The inclusion of or reference to any business or organization on this page is not meant to be an endorsement by the Government of Prince Edward Island of the services offered by any particular business or organization. Further, the Government of Prince Edward Island advises that individual entries are based on information supplied by the business or organization in question. Therefore, while InfoPEI is updated to correct errors as appropriate, the Government of Prince Edward Island does not warrant that the information is accurate.