Agriculture Loan and Loan Guarantees ### 📋 Eligible Entities - Individual farmers (Canadian citizens or permanent residents) - Farm partnerships and joint ventures - Agricultural corporations (including family farms incorporated as corporations) - New farmers with limited agricultural experience - Established farmers looking to expand or transition operations - Indigenous peoples and Indigenous-owned agricultural enterprises - Young farmers (under 40 years old may qualify for enhanced terms) - Applicants must demonstrate intent to operate the farm actively and on a full-time or part-time basis ### 💰 Funding Details - Loan amounts: Typically up to a maximum of $500,000 per applicant (varies by province and program specifics) - Interest rates: Competitive rates set by participating lenders; may be subsidized or reduced depending on farm type and borrower profile - Loan guarantees: Government guarantees a percentage of the loan (typically 50-90%) to reduce lender risk - Repayment terms: Generally 10-25 years depending on asset financed (shorter for equipment, longer for land/buildings) - No government repayment required if loan guarantee is used; only the lender must be repaid - Down payment: Often 10-20% required from the borrower - Matching component: Borrower must secure private sector financing; government guarantee bridges the gap ### 🛠️ Approved Expenses - Land acquisition (purchase of farmland or development of existing land) - Farm establishment costs for new farming operations - Purchase of existing farms or farm operations - Equity investment in farming partnerships or corporations - Farm buildings and infrastructure (barns, grain storage, irrigation systems) - Purchase of farm equipment and machinery - Breeding livestock acquisition - Working capital for farm operations (in some cases) - Farm improvements and renovations ### ⚠️ Conditions & Milestones - Viability assessment: Farm must demonstrate economic viability through a business plan - Lending partner requirement: Applicant must work with an approved participating lender or