RESOURCES:  LOANS, PROGRAMS AND SERVICES

There are numerous financial assistance programs offered by the Department of Agriculture, Aquaculture and Fisheries. Some are joint federal/provincial programs, some are federal programs administered by the province and some are provincial initiatives only.

These programs are subject to change depending on federal-provincial agreements and changes to annual budgets.

For more information about Department of Agriculture, Aquaculture and Fisheries financial assistance programs: For all the program details, contact information, eligibility and funding details and application forms, visit: www2.gnb.ca/content/gnb/en/departments/10/agriculture.html.

 

Under Industry Programs, select Agriculture to find links to all programs. With a click on any program, you will find all pertinent information.

Department of Agriculture, Aquaculture and Fisheries Services 

There are many services and publications provided by the Department of Agriculture, Aquaculture and Fisheries. These include:

  • Free consultations with extension specialists;

  • A wide range of technical bulletins online and in the staff offices;

  • Annual reports of the Department of Agriculture, Aquaculture and Fisheries;

  • Agricultural statistics and more; 

  • The Social Media Toolkit: A guide for farmers, fishermen and producers of New Brunswick. Click here to download the toolkit;

  • Veterinarian and veterinarian lab services provided for a fee;

  • Mentorship opportunities through the Agri-Industry Development & Advancement program. Click here for more information. Refer to section 5;

  • A team of Business Growth Officers. Click here to know the business growth officer in your region. 

  • AgPal - AgPal is a web-based discovery tool developed by Agriculture and Agri-Food Canada (AAFC) to help farmers and others in the agriculture and agri-business sector find the federal, provincial, and territorial agricultural information that specifically applies to them. This program facilitates finding provincial and federal agricultural programs.  http://www.agpal.ca/#/search 

 

 

 

Department of Agriculture, Aquaculture and Fisheries Veterinary Services

 

New Brunswick, through the Department of Agriculture, Aquaculture and Fisheries, is one of the few remaining provinces that offer veterinary services to agricultural producers. These services can be broken down into field services, clinic services and veterinary laboratory services. The department has field veterinarians throughout the province, an equine specialist, a poultry specialist and two lab pathologists.

 

Field Veterinary Services provides on farm and emergency call services for the livestock sector 24 hours a day, seven days a week for a fee that the producer pays. Veterinarian services are offered at a published discount rate for all agricultural producers regardless of location. Horse owners are also serviced by New Brunswick veterinarians, but pay higher levels than food animal or fur bearing producers.

 

These services can be obtained from the regional department offices located in Moncton, Fredericton, Sussex, Grand Falls, Bathurst and Wicklow. .

 

Agricultural Development Board – loan programs

 

The Agricultural Development Board offers a number of financial programs to eligible candidates. A candidate must meet certain eligibility requirements, submit a business plan and have a certain level of equity. Each program listed below has different eligibility requirements. To learn more, visit www2.gnb.ca/content/gnb/en/departments/10/agriculture.html.

 

Agricultural direct loans

Overview

The Agricultural Development Board can provide financial assistance, in the form of loans, to projects that are deemed strategic to provincial agricultural strategies. These loans are designed to complement other sources of lending such as Farm Credit Canada and financial institutions.

 

Eligibility

  • Project must be deemed strategic to provincial agricultural strategies;

  • 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 as well as an acceptable credit history;

  • The project must fit with the province’s sector strategies (in terms of impact on agricultural land, jobs, export sales, markets, etc.);

  • Acceptable security must be provided for the proposed financing; and

  • The applicant must show an acceptable amount of equity in the business.

 

Description

  • Direct loans are offered for projects that are considered strategic to the industry, with the objective of complementing other financial lenders.

  • Direct loans are amortized for up to 20 years at the provincial interest lending rate.

 

Livestock Incentive Loan Program

 

Overview

The department may guarantee loans to financial institutions for farmers purchasing and raising livestock.

 

Eligibility

  • Both full-time and part-time farmers may apply;

  • 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 as well as an acceptable credit history;

  • Acceptable security must be provided for the proposed financing; and

  • The applicant must invest at least 10 per cent equity in the project.

 

Loan Guarantees for Agriculture

 

Overview  

  • The Agricultural Development Board can provide loan guarantees to financial institutions, on a portion of a line of credit, for working capital requirements. The guarantees are typically for up to a maximum of 80 per cent of line of credit and usually for up to three years;

  • 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 as well as an acceptable credit history;

  • Acceptable security must be provided for the proposed financing; and

  • The applicant must show an acceptable amount of equity in the business.

 

Description

  • This program provides a guarantee, to financial institutions, on a portion of a line of credit, for working capital requirements. The guarantee is typically for up to 80 per cent of line of credit and usually for up to three years.

  • There is a loan guarantee fee of 1.5 per cent of the amount guaranteed, paid at the beginning of each year.

 

New Entrant Farmer Loan Program

 

Overview

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.

 

Eligibility

  • 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 as well as an acceptable credit history; and

  • Acceptable security must be provided for the proposed financing. Description

  • Loans of up to 100 per cent of the appraised value of security, to a maximum amount of $750,000;

  • Amortized up to 20 years at provincial lending rate; and

  • Payments:

    • During years 1 to 4 – interest only;

    • Year 5 to end of loan – blended payments of interest and principal;

  • During first four years of loan, the client may apply for additional loan for expansion or improvement (not exceeding the maximum amount of $750,000).

New Land Lease Purchase Program

 

Overview

The Agricultural Development Board can purchase eligible land and lease it to an applicant for up to six years. The applicant agrees to purchase the land at the end of the lease.

 

Eligibility

  • The proposed land has not had any agricultural crop produced or harvested during the previous two years, excluding unimproved forage land.

  • 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 as well as an acceptable credit history;

  • Acceptable security must be provided for the proposed financing; and

  • The applicant must show an acceptable amount of equity in the business. Description

  • Land is purchased by the Agricultural Development Board and then leased for six years;

  • Financing of land up to 100 per cent of enhanced value;

  • Approved land development work can be part of the lease;

  • During years 1 and 2, annual lease payments are deferred (based on the equivalent of the annual provincial lending rate and the lease amount);

  • Beginning in year 3, annual lease payments are made at the beginning of each year; and,

  • Client agrees to purchase the land from the Agricultural Development Board at the end of six years.

 

Perennial Crop Establishment Loan Program

 

Overview

The Agricultural Development Board can provide financial assistance, in the form of loans, to persons wishing to establish a perennial crop.

 

Eligibility

  • Perennial crop operations in New Brunswick;

  • 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 as well as an acceptable credit history;

  • Acceptable security must be provided for the proposed financing; and

  • The applicant must show an acceptable amount of equity in the business.

 

Description

  • Finances perennial crops up to 75 per cent of the enhanced value;

  • Amortized up to 10 years at the provincial lending rate;

  • No payments during the first five years of the loan;

  • Interest is charged and capitalized annually;

  • Interest on the outstanding balance is paid annually starting in year six; and

  • Loan balance paid at end of term.

Other Potential Financial Resources 

 

Many businesses fail, especially in the first five years of operation, due to being under-capitalized or not having enough financial resources. It is essential that financial forecasts be made as realistic as possible.

 

It is highly recommended to seek out professionals to help with this. Other potential financial resources include:

If you are a qualified producer younger than 40 years of age, the Young Farmer Loan can help you take the next step in your agriculture career.

For more information: www.fcc-fac.ca/en/we-finance/agriculture/young-farmers

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