Special Provisions for Financial Difficulties

Overview of the Special Provisions for Financial Difficulties program:

Special Provisions for Financial Difficulties is a funding program which aims to provide Ontario farmers with assistance with regards to their farming financial difficulties. Ontario farmers who are experiencing financial difficulty may be eligible for cost-share support for financial advisory services to complete a Farm Financial Analysis. Documentation supporting financial difficulty is required with the application.

Benefits of the Special Provisions for Financial Difficulties program:

• Eligible applicants may receive a one-time funding of 100% cost-share, up to a maximum of $5,650 (inclusive of HST). This funding can be used for various projects within the farming sector, including hiring a third-party Financial Advisor to complete a Farm Financial Analysis (FFA) that meets all program requirements.

Eligibility criteria of the Special Provisions for Financial Difficulties program:

• To qualify, an established farm business must meet the following criteria:
• Active Farming in Ontario
• Farm Business Registration Number (FBRN)
• Provide a valid FBRN.
• Religious Exemption Letter
• Submit a letter from the OMAFRA Appeal Tribunal.
• Cultural Exemption Letter
• Provide a letter from the Indian Agricultural Program of Ontario, verifying operation in a First Nations community.
• New Entrants to Agriculture
• Income tax filings in Ontario showing less than $7,000 gross farm income for 2021 and 2022.
• Proof of ownership or control of productive agricultural assets to project over $7,000 gross farm income within three years of applying.
• Contact OSCIA to request a New Farm Business Application Form.
• Valid Premises Identification Number (PID)
• Ensure the farm property where the project will be implemented has a valid PID.
• Keep PID numbers up to date. Visit ontariopid.com or call 1-888-247-4999 to update or obtain a PID.
• Experiencing Financial Difficulty
• Provide supporting documentation for any of the following:
• Inability to make financial payments or make them on time.
• Property value insufficient to cover debts if sold.
• Notice of Intent to Realize on Security or other recovery plan from a creditor.
• Loans called or indicated to be called within 90 days by lenders.
• Significant reduction (20-25%) or demand for repayment of lines of credit by lenders.
• Inability to access required operating credit.
• Significant business losses in one or more successive years, impacting the ability to meet future obligations (not due to cash basis tax planning).
• Input suppliers requiring cash on demand (COD) payments.
• Loss of off-farm income needed to support the farming operation.
• Financial hardship due to a debilitating medical condition or death of the primary business owner/operator.
• Inability to meet essential family living expenses (e.g., food, clothing, heat, hydro, medical/healthcare).
• Utilities being disconnected.
• Ensure all required documentation is included with your application to be considered for assistance.