Agriculture Loan and Loan Guarantees

Overview of the Agriculture Loan and Loan Guarantees program:

Administered by the Department of Agriculture, Aquaculture and Fisheries, the Agriculture Loan and Loan Guarantees Program is designed to assist New Brunswick’s agricultural producers in accessing financing for a broad range of farming activities. The program supports both new entrants and established farmers in developing sustainable, competitive, and innovative agricultural operations within the province. Eligible applicants can either apply for direct loans from the provincial government or obtain loan guarantees that reduce the lender's risk and make borrowing more accessible from private financial institutions. These options can be used for capital purchases, land acquisition, building construction, herd expansion, equipment upgrades, and operational needs. The program encourages sector innovation, diversification, and generational succession in farming. The loan guarantees can cover up to 80% of the value of the loan, which helps increase borrower eligibility and reduce collateral requirements. Meanwhile, the direct loan option is typically structured with competitive interest rates and longer amortization periods, making it ideal for long-term investments. This initiative plays a key role in ensuring food security, rural economic development, and environmental sustainability by encouraging investments in productivity-enhancing technologies, climate-smart practices, and intergenerational farm transfers. The department works closely with Farm Credit Canada (FCC), credit unions, and chartered banks to facilitate lending under this program.

Benefits of the Agriculture Loan and Loan Guarantees program:

• Access to affordable financing or loan guarantees for agricultural development
• Loan guarantees up to 80% reduce barriers to bank financing
• Direct loans with competitive interest rates and flexible repayment options
• Supports a wide range of needs: land purchase, building construction, herd expansion, diversification, and innovation
• Encourages young farmer entry, farm succession, and business modernization
• Enables long-term planning and expansion with tailored loan structures
• Reinforces agriculture sector sustainability and food security in New Brunswick
• Builds resilience by supporting climate-smart technologies and market diversification

Eligibility criteria of the Agriculture Loan and Loan Guarantees program:

• Eligible applicants must:
• Be residents or registered businesses in New Brunswick
• Be actively involved in or planning to operate a commercial agricultural enterprise
• Submit a comprehensive business plan and demonstrate financial viability
• For loan guarantees, applicants must secure support from a recognized lender (e.g., FCC, credit union, chartered bank)
• For direct loans, applicants must meet the provinces lending criteria
• Projects must contribute to agricultural development, innovation, or sustainability
• Eligible activities include:
• Farm establishment or expansion
• Land and equipment purchases
• Facility construction or improvement
• Herd or livestock expansion
• Business innovation and diversification
• Succession planning and intergenerational transfer