Canadian Agricultural Loans Act program: Step 2. Who is eligible

Step 2. Who is eligible

You can apply if you are one of the following:

• existing farmers
• beginning farmers (that is, less than 6 years of farming)
• start-up farmers
• farmers taking over the family farm
• part-time farmers
• agricultural co-operatives with a majority (50% + 1) farmer membership

Beginning or start up farmers may need to provide the lender with a business plan and an income tax form showing no farm income and/or expense for at least one year in the last six years.

Agricultural co-operatives may need to provide a current income tax return showing farm income and/or expense from 50% + 1 of its members or a notarized attestation as to its membership.

A farm operation must meet the definition of farmer and farming as defined in the Canadian Agricultural Loans Act.

Farmer: may be one of the following that is or intends to be engaged in farming in Canada:

• an individual
• a partnership
• a corporation
• a co-operative association

Farming:

• the production of field-grown crops, cultivated and uncultivated, and horticultural crops
• the raising of livestock, poultry, and fur-bearing animals
• the production of eggs, milk, honey, maple syrup, tobacco, fibre, wood from woodlots, and fodder crops
• the production or raising of any other prescribed thing or animal

Eligible purposes

The following are eligible purposes under the Act.

Real property purposes:

• Purchase of land
• Construction, repair or alteration of, or additions to, any building or structure on a farm
• Purchase, movement to and installing on a farm of complete or partially complete structures and, where necessary, the completion of the installed structures

Other loan purposes:

• Purchase, installation, alteration, major overhaul, or major repair to/of:
  • tools, implements, apparatus and machines of any kind not usually affixed to real or immovable property
  • machinery and apparatus for the generation or distribution of electricity, whether or not affixed to real or immovable property
• Purchase of breeding livestock which will provide a long-term improvement to a farm operation including:
  • horses and other equines
  • cattle, sheep, goats and other ruminants
  • swine, poultry, bees and fur-bearing animals
  • any other prescribed animal
• Erection or construction of fencing or works for drainage
• Clearing, breaking, irrigating and reclaiming of land
• Conservation of soil, prevention of soil erosion by the planting of trees and shelter belts
• Repair or overhaul of fencing where the cost is $2,000 or more
• Purchase and the planting of trees for syrup production and the purchase and planting of fruit trees, Christmas trees, and ginseng, where the cost is $2,000 or more
• Construction of a road or driveway on a farm
• Land transfer tax, survey, appraisal and legal costs relating to the purchase of additional land
• Purchase of shares for inter-generational farm transfers
• Consolidation/refinancing of loans

Ineligible purposes

The following are ineligible purposes under the Act:

• Improvements to the family dwelling
• Quota purchases of any kind
• Operating loans and loans for the purchase of short term feeder livestock
• Consolidation of a lender's ordinary loans