The Nova Scotia Farm Loan Board's mission is to promote, encourage and support the development of agricultural businesses in Nova Scotia through the provision of long-term loans at fixed interest rates and financial counselling services.
 

The Nova Scotia Farm Loan Board encourages everyone who plans on applying for a farm loan to prepare a business plan of the proposed business outlining the objectives of the business, anticipated development or start up costs, anticipated operating costs and aniticipated revenues. A business plan allows you to create a business operation "on paper" and will allow you to evaluate scenarios without the risk of investing a lot of time and money. Dry run planning reduces the possibility of the venture failing, identifies your proposal's strengths and weaknesses and develops a plan of action to cope with them.

Financial Institutions, business partners and investors will all require that you have a proper business plan to prove that your ideas are viable and that you have adequate knowledge of your chosen area of business.

Whether you are starting a new business, buying an existing one or expanding your present operation, a business plan will help you to prepare for the unexpected and help to set the goals for your future business success. There is no replacement for a well thought out business plan. Be realistic in your projections, honest in your evaluations and thorough in your research.
 

The Nova Scotia Farm Loan Board will require information on the background of the applicant including education and special training, farm and work experience, a listing of personal and business assets (including cash, receivables, livestock, equipment, buildings and land) and liabilities (loans and payables) and the purpose of the loan.
 

The Nova Scotia Farm Loan Board typically lends money for long-term assets such as farm acquisitions (i.e. purchasing farms as going concerns), land purchases and building construction and their improvements. However, the Board may lend money for a variety of purposes that are considered to be worthwhile for the sustainable development of rural agri-businesses.

The lending industry recommends that loans should be timed for the life of the asset being purchased. In other words operating items such as feed, fuel and cropping expenses should be purchased with short-term "operating" loans of up to a year in length, intermediate items such as tractors and equipment should be financed with intermediate-term money ranging from 5 to 10 years in length and long-term assets such as buildings and land should be financed with long-term money ranging from 10 to 20 years in length.

The mandate of the Board is the farming community of Nova Scotia.
 

The Nova Scotia Farm Loan Board encourages both existing producers and new, prospective farmers to make application.
 

The current interest rates of the Board can be viewed on its Interest Rates" web page.
 

Payments can be made monthly, semi-annually or annually.

Often times the repayments are based on anticipated revenue flow. For example a dairy operation that generates monthly revenue will normally pay its loan with monthly payments. A cropping operation that has revenue once a year may choose annual payments. Payment options can be reviewed in more detail with your loan officer.
 

The Nova Scotia Farm Loan Board bases its decision on a number of factors.

The Nova Scotia Farm Loan Board may lend money up to 90% of the appraised value of real property and chattels securing the loan. Therefore at least a 10 per cent down payment should be available.
 

An estimate of value is determined through an appraisal by one of our loan officers based on market value, income potential or cost approach less depreciation. Outside appraisals may be accepted by the Board.
 

Loans can be amortized for any period up to and including 24 years. In special circumstances the Board's regulations will allow for amortizations up to 30 years.
 

Yes, the New Entrants to Agriculture Program is co-ordinated through the Farm Loan Board. This program is available to assist new entrants entering into farm business operations for the first time. For further information visit the information section of this website or contact our office at 902-893-6506.

There are other programs co-ordinated through other sections of the Department of Agriculture and Fisheries that may be available to assist you. Your loan officer will be able to direct you to these.
 

Loans are either approved by management of the Board, the Board itself or Order in Council as per the requlations of the Board.
 

From time to time the Board offers properties for public tender. If the Board does not accept the public tender, it may sell the property to interested parties outside the tender process providing an acceptable offer is put forth.

The Board does not act as a real estate agent selling properties.
 

Nova Scotia Farm Loan Board contact information can be viewed on its How to Contact Us web page.