NOHFC offering farmers a business opportunity program

By Gary Sliworsky
OMAF/MRA Rep.

The Ministry of Northern Development and Mines recently added a new initiative related to agriculture projects under the Northern Ontario Heritage Fund Corporation’s (NOHFC) Northern Business Opportunity Program. It is for individual agricultural projects.
New farms can apply for funding under the Small Business Start-Up Stream (http://nohfc.ca/en/programs/northern-business-opportunity-program-small-business-start-projects) or the Business Expansion Stream (http://nohfc.ca/en/programs/northern-business-opportunity-program-business-expansion-projects) depending on the needs/size of the project.
For new farms, NOHFC will consider all agricultural buildings, equipment, and storage facility costs as eligible for support. Marketing and third-party training costs are also eligible for support.
Existing farms can apply under the Business Expansion Stream.
For existing farms, NOHFC will consider only those building, equipment, and storage facility costs that are incremental to the existing operation as eligible for support (e.g. assets that are needed on the farm to support the growth activities). Replacement or upgrade of existing assets is not eligible. Marketing and third-party training costs are also eligible for support.

Who is Eligible?
•Farm businesses are eligible to apply.

What is Eligible?
•Capital costs associated with starting or expanding a farm operation, namely capital construction, leasehold improvements, storage facility costs and new or used equipment.
•Marketing costs are also eligible at up to 20 per cent of other eligible project costs.
• Training costs incurred with third-parties will be considered on a case-by-case basis.
•Land clearing and/or tile drainage contractor costs (materials and labour).
• Quota.
•Permanent and predator-proof fencing.

What is not Eligible?
•The ineligible costs and activities listed in the program guidelines.

Funding
For projects under the Small Business Start-Up Stream:
·NOHFC will fund 50 per cent of eligible costs.
·100 per cent of the funding is in the form of a conditional grant up to $200,000 per project.
For projects under the Business Expansion Stream:
·NOHFC will fund 50 per cent of eligible costs that are incremental to the existing operation.
·30 per cent of the funding is in the form of a conditional contribution with 70 per cent as a repayable loan for a combined maximum of up to $1 million per project.

General Guidelines
• Applicants are strongly encouraged to consult with OMAF and MRA staff on viability of projects that are proposed.