It is Emo Fair time!

By Gary Sliworsky
OMAFRA Rep.

The Canadian Agricultural Loans Act (CALA) is a loan guarantee program which provides loans to farmers and agricultural co-operatives. Existing farmers, beginning/start-up farmers (i.e. less than 6 years of farming) ,farmers taking over the family farm , and agricultural co-operatives with a majority (50% + 1) farmer membership may apply.
If a purchase has already been made, a farmer has 60 days to receive funding from a lender for a CALA loan. A beginning or start-up farmer should be prepared to provide the lender with a business plan and/or an income tax form showing no farm income and/or expenses at least once in the last six years. Agricultural co-operatives will need to be prepared to provide a current income tax return showing farm income and/or expenses from 50% + 1 of its members or a notarized attestation as to their membership.
The following financial institutions offer loans under the CALA: Chartered banks trust companies, loan companies, credit unions, insurance companies, other designated organizations. The farmer must pay a fee to have the loan registered and guaranteed under the CALA. This fee is 0.85% of the amount of the loan. The lender may also charge an administration fee of 0.25% of the amount of the loan up to a maximum of $250.
Eligible loan purposes include the following that must be used in the applicant’s farming operation: Equipment, building/ construction, land, livestock, and shares in a farming operation.
The maximum loan is: $500,000 for land and the construction or improvement of buildings, $350,000 for all other loan purposes. The maximum aggregate loan limit for any one borrower is $500,000. The maximum aggregate loan limit for agricultural cooperatives is $3 million, with the Minister’s approval.
The maximum term for loans is 10 years, with 15 years for loans on land purchases. Interest to be paid on a floating rate is the lender’s prime rate plus a maximum of 1%. Interest to be paid on a fixed-term rate uses a formula based on the lender’s residential mortgage rate plus a maximum of 1%.
For more information: contact your financial institution, e-mail CALA at fgp-pgf@agr.gc.ca, call the CALA toll-free line at 1-888-346-2511 or visit the CALA website at http://www.agr.gc.ca/cala

Dates to Remember
August 10 - 12 – Large animal clinic dates for Dr. Blair Simonson. Call 274-7393 to book an appointment
August 13 -15 – Rainy River Valley Agricultural Fair, Emo
August 22 – Cattle sale, Stratton Sales Yard, 9:30 am start.