Category Archives: Farm Loans

Things to Consider When Buying a Farm

farm-for-sale

When you are considering buying a farm, it’s important to be prepared for some of the hidden challenges that will come up. A lot of things will seem self-evident but here are a few things to consider that may not be:

A good Real-Estate agent will save you time and money

Farm properties are a unique category of real-estate. There are many complex aspects to purchasing a farm that is not involved in the urban real-estate market. Make sure your agent is knowledgeable in farm and rural issues. Getting a good agent in the mix will save you both time and money when you buy a farm.

Availability of local markets

Although you may not sell all of your main production at the local farmer’s market, these types of locations can add a lot of needed cash flow to the small farmer. Having one nearby will allow you to maintain cash flow throughout the year by marketing complimentary items. If you have some crops that appeal directly to end users, you can maximize your margins by selling directly at the market rather than to resellers.

Infrastructure on Property

What sorts of buildings and improvements are on the property? How many of them are useful to you in your farm business plan? Is there infrastructure or buildings that can be adapted to your needs if they don;t already match them currently? If the farm comes with equipment, or a stockpile of resources like hay or firewood you may be able to use them to increase your returns.

History of the land and site evaluation

What sorts of crops or livestock were raised on the property previously? Are there any parts of the property that have had different purposes in the past? The current owners may provide information, but consulting with the neighbors may also yield valuable insights about the farm you are buying.

Tax status & zoning

What will your property taxes be? If the land is zoned as farming, you will have to keep it in prodcution in order to keep the lower farm tax rate. If it’s not zoned for farming, you will have to inquire with the local zoning authority how to get the proper zoning approved.

Soil tests

Comprehensive soil tests and profiling will  help you prepare for the best crop choices for your new farm. If you are interested in organic production, it would be wise to test your soil for residues and other heavy metals that may inhibit your ability to grow organically. This can be expensive but worth the investment.

Access to Water

If you plan on buying a farm, this is by far the most important resource to consider before you buy a farm. Water rights law is very complex and making sure you understand your rights and usage is extremely critical.  Know if you rights are currently valid and active. What are the water sources on the property?  It is also important to know what year your rights date back to. Senior water rights always get the water first. Do you have ponds, creeks, or wells that you are legally able to irrigate from?  What is the drinking water source? If from a well, test your water for metals and other contaminants.

A little bit of planning while you are looking for your new farm property can save big headaches in the long-run. If you are starting or buying a farm, Canadian Grants Business Center can help you locate the funding to get your farm business going.

Start or expand your farming business now: the Canadian Grants Business Center can help.

Contact us Toll-Free at 1-888-231-0075 or Contact us now to find out more!

Funding for Canadian Fruit Farmers

Canada has a major fruit industry despite our short growing season and cold climate.

Most Canadian fruit production occurs in Southern Ontario and southwest British Columbia, as they average the longest frost-free period per year at about 180 days. Parts of Quebec and the Maritimes also produce significant fruit crops, even with a shorter 120 frost-free days on average per year.

 

In British Columbia grapes, blueberries and cranberries lead the way. Ontario is the largest apple producer.  Canada’s most valuable fruit harvest is the blueberry crop consisting of domesticated and wild varieties. Canada is in fact now the world’s largest producer of wild blueberries.

Most fruit plants are perennial and as such offer an attractive annual return to farmers who are looking for either high-value side crop or to concentrate on fruit growing.

The cost to establish an Orchard, Vineyard or blueberry farm can be substantial. Fortunately, there are several funding programs available to farmers looking to establish or grow a fruit farming business.

When you are ready to expand your fruit orchard or start a new fruit farm,

The Canadian Grants Business Center can help.

Contact us Toll-Free at 1-888-231-0075 or Contact us now to find out more!

Funding for Farm Upgrades: Grow Your Farm in 2017

 

Starting or expanding a farm can be a challenge, but is also very rewarding, both financially and in terms of personal satisfaction.

There are many farm grants programs set up to facilitate farm investment and encourage growth.

Farmers regularly apply and receive funding for a variety of business purposes including:

  • Barn construction and upgrades
  • Livestock purchase
  • Seed and fertilizer purchase
  • Tractor and combine purchase or lease
  • Land acquisition and clearing
  • Installation of Irrigation Systems
  • Installation of Tile Drainage
  • Fencing
  • Implementing Technology Upgrades


Farm upgrades can be a great way to drive on-farm productivity in 2017 and for tomorrow.

If you are ready to start or expand a farm, the Canadian Grants Business Center can help find funding. Find funding at:

http://www.canadiangrantsbusinesscenter.com/Funding-Finder.html

Or call us Toll-free at:

1-888-231-0075

Equipment for Farming Part 3: Dairy Milking Machines

When running a dairy farm, milk production is the main source of farm revenue, and so the dairy farmer will try to maximize the quality and quantity of milk produced by the herd.  Dairy farming has a unique set of equipment requirements as compared to other types of animal farms focused on raising livestock for consumption. The milking setup and equipment can have a major effect on the efficiency and quality of the milking process.

There are several levels of complexity when it comes to milking equipment. The least complicated is hand milking, which is not really viable for a commercial farm in today’s day and age. As we go from less complicated to more complicated milking equipment setups, we see a whole range of setups starting at the simplest labor intensive vacuum assisted setups all the way to completely automated robotic milking stations.

Fully automatic milking systems are somewhat popular in Europe but remain much less popular in Canada. The majority of dairy farms in the Canadian market continue to use more traditional, cost effective and easily maintained equipment.

A typical milking machine extracts milk from the cow’s udder by vacuum. They are designed to apply a constant vacuum to the end of the teat to extract the milk, transfer it to a container, and maintain blood circulation with a regular squeeze.

A milking machine installation consists of a system of pipes connecting the various vessels and other components through which air and milk flow. The system operates by vacuum, and therefore requires forces to be applied to function. Atmospheric pressure forces air, and intra-mammary milk pressure forces milk, into the system. The combination of these forces causes flow. To work continuously, air and milk must be removed from the system at appropriate rates. The air is removed with a vacuum pump and the milk is removed by a milk pump.

The right milking equipment can help raise efficiency and keep dairy cattle in top shape.

The cost to build a milking parlor (milking facility) with equipment can range anywhere from $30,000.00 on the low end upwards of $300,000.00 for large and complex installations. Milking equipment costs can be substantial, and it’s important to take advantage of all sources of funding available to your farm. Whatever you decide: Buying new or used equipment will be a key to your on-farm success. Start or expand your farming business now: the Canadian Grants Business Center can help.

Contact us Toll-Free at 1-888-231-0075 or Contact us now to find out more!

Tile Drainage on the Farm

Tile drainage installations increase yields

Properly installed tile drainage can consistently increase crop yields on farms by 29 to 36 percent.

Tile drainage installation is not cheap. Installation can cost up to $1,000 an acre or more depending on the property, but tile drainage is a proven way to boost production and revenue potential from your existing land base.  A comparison of tile drainage costs versus new land purchase price, make tile drainage a great value with land prices at an all time high.For high-value crops and productive land, tile drainage should be considered an essential capital investment to reduce risk and ensure optimal yields.

Not just about yields

The benefits of tile go beyond yields. With less surface runoff occurring, soil losses can be reduced by 90%. Tile releases water slowly and over a long period of time.

There are tax advantages to tile installs. Tile drainage costs are fully deductible in the current tax year, or you can maximize the benefit by carrying all or part of the expense forward for up to five years.

Shifts in production practices across Canada over recent years make tile drainage even more valuable to Canadian farmers. Reduced tillage and no-till planting techniques along with earlier planting seasons make it essential to have fields that dry quickly and uniformly. Closely spaced tile can also help minimize compaction common with wet sections in spring and fall.

Self-installed tiling

GPS technology and computer software that takes land elevations into account have made it easier to efficiently map out how tile runs should be oriented to maximum drainage efficiency. The same tools professionals use to map a tile install are available to those who want to do their own tiling with a pull-type tile plow.

Tile plows can be pulled with a tractor. Horsepower requirements depend on soil type and how deep the tile needs to go. A tractor weighing 30,000 pounds or more and a minimum of 200 horsepower are needed for the task. Having a plow lets a farmer get the tile in at the optimal time and you do the least amount of damage and compaction, wihtout having to wait for a contractor to fit in a tight schedule. Owning a plow also allows a farmer to put a short run in to solve a problem spot on demand.

The right drainage installation can help keep the property in top shape. Farmland improvement costs can be substantial, and it’s important to take advantage of all sources of funding available to your farm. Start or expand your farming business now: the Canadian Grants Business Center can help.

Contact us Toll-Free at 1-888-231-0075 or Contact us now to find out more!

Equipment for Farming Part 1: Cattle

In order to properly plan for a new or expanded farming business, proper equipment is a must.

Different kinds of farming require different equipment. Cattle farming is more than just a business, it is a lifestyle. There is paperwork,  production, and everyday chores to keep you busy. Here are just a few:  fence mending, feeding, vehicle maintenance, grazing management and animal health tasks.

A cattle farming operation should be as efficient as possible. This way, an operator can be more productive and have more time for projects and personal time. The right Cattle equipment helps an operation run efficiently. A tractor can pull a trailer that carries feed, and eliminate the need to drag around bins. An auger for the tractor can change digging for fence post installation and repairs from back breaking work to a more manageable task. There are other useful tractor add-ons like a soil turner that will help grass regrow, and attachments to help prepare and harvest hay.

In addition to a tractor, the following groups of equipment are a must have for most cattle operations:
Cattle Handling Equipment
This is the equipment necessary when moving, weighing and inspecting cattle. Equipment includes: calf tables, cattle headgates, squeeze chutes, loading chutes and cattle handling accessories such as weighing scales, head chains and squeeze chute adaptors.

Corral Systems
Corral systems are small enclosures that help contain animals and limit movement. Corral systems are either permanent or portable.  Prices depend on the number of cattle it can hold, as well as additional features. Some corral systems have adjustable alley sections, arena panels, a smaller holding pen, adjustable alley gates and alley frames that can connect directly to a squeeze chute.

Cattle Feeders
This equipment is needed for cattle feeding. Cattle feeders are a must in feedlot settings and are highly recommended for ranchers raising grass-fed cattle. In feedlots it is where cattle are entirely fed; for pasture cattle, it is also needed for giving nutritional supplements. Feeder equipment includes: creep feeders, bale feeders, bulk mineral feeders and bunk feeders.

Waterers and Water Tanks
Large livestock require a lot of water.  Cattle waterers include troughs and bowls. The materials range from galvanized steel to rubber to concrete waterers.

The right cattle equipment can help raise the herd and keep the property in top shape. Farming equipment costs can be substantial, and it’s important to take advantage of all sources of funding available to your farm. Whatever you decide: Buying new or used equipment will be a key to your on-farm success. Start or expand your farming business now: the Canadian Grants Business Center can help.

Contact us Toll-Free at 1-888-231-0075 or Contact us now to find out more!

Farm Grants for Organic Farming

Organic crops are produced without synthetic fertilizers, herbicides, insecticides or fungicides on land that has been free of these chemicals for at least 3 years. Animal products fed organic grains and forage, synthetic hormones, antibiotics, and drugs can be considered organic.

In order to be considered organic, a producer must be certified by the appropriate certification body in keeping with the Canada Organic Regime.

Land Transition Requirements:

In order to use land fro organic crops, the land must be tended for 36 months with no prohibited inputs (fertilizer, herbicide, etc) before organic status.

Under the Canadian system, new applicants who wish to market organic field crops must apply for certification 15 months prior to the expected marketing date. Existing clients wishing to add new land to their certification must ensure that the land is managed according to the Canadian regulations for at least 12 months prior to certification. The European Equivalency Agreement which came into effect July 2011 now recognizes as organic any product certified under the Canadian system.

Livestock Transition Requirements:

There is a one-year transition for livestock to become organic breeding stock. Breeding stock cannot be sold for organic slaughter. Offspring from organic breeding stock is eligible for organic slaughter. If conventional or transitional livestock are managed organically from the start of their third trimester of gestation, then the offspring is eligible for organic slaughter.

Dairy cattle have a one year transition before the milk produced is eligible for organic status. Poultry must be under organic management beginning no later than the second day of life.

Organic certification can be a great way to drive revenue growth on a new or existing farm.

If you are ready to consider becoming an organic certified producer, the Canadian Grants Business Center can help find funding. Find funding at:

http://www.canadiangrantsbusinesscenter.com/Funding-Finder.html

Or call us Toll-free at:

1-888-231-0075

Is Buying Farmland a Good Investment?

Buying farmland can be a great investment opportunity for Canadians. There are many factors that make this true here a few of the basic ones:

  • Farmland will always be worth something. Regardless of the fluctuations in the stock market or residential real estate, farmland will always retain some value because it is required for the most basic of human needs: food production.
  • The supply of farmland is always decreasing as pressure from increasing populations lead to urban sprawl. Things go up in value when supply goes down.
  • Farmland can be used to create real value for the owner either in the production of food or can generate income when rented to another farmer.

Increasing populations in North America create an increase in demand for food, but no new farmland is being made. In some areas of North America, land prices per acre doubled in less than 3 years. Canadian farmland is uniquely positioned to increase in value even more as climate change disrupts weather patterns and US producers are marginalized.

So it is clear that buying farmland can function both as a resource for your farm, but also an investment that will appreciate in value for years to come.

If you are ready to consider purchasing farmland to start or grow a farm, the Canadian Grants Business Center can help. Find funding at:

http://www.canadiangrantsbusinesscenter.com/Funding-Finder.html

Or call us Toll-free at:

1-888-231-0075

Women Farmers of Canada

over one-quarter (27.5%) of Canadian farmers are women
Over one-quarter of Canadian farmers are women.

Canada is the fifth largest agricultural exporter in the world and over one-quarter (27.5%) of Canadian farmers are women. Women are an important part of the workforce in Canada, and an increasingly important part of the Agricultural production of our country.

Across Canada farmers — a majority of whom are men — are getting older. The next generation of farmers is slowly taking over. We have seen a major increase in the number of women taking over family farms, and entering the field as new farmers.

Women can face unique challenges as a working farmer. Finding a balance between a farm career and family goals can be hard. The lack of female role models and rural child care can limit networking opportunities and career growth. Commodity boards and the agribusiness industry are staffed more often by men, and this can create an atmosphere of a “boys club”.

Having women in decision-making positions could have an impact beyond gender equity. Women want more information before making decisions and might take fewer risks in stressful situations. In a farm with partner operators and more collaborative decision-making, there’s  more opportunity for balancing year-to-year yields rather than extreme highs and lows based on the risks that male operators are taking. This can be a great thing for the viability and long-term sustainability of a farm.

An open minded approach and support for women in farming will be good for the Canadian Farming sector and the Country as a whole.

If you are a woman farmer or a woman looking to start or buy a farm, Canadian Grants Business Center can help. Find funding at:

http://www.canadiangrantsbusinesscenter.com/Funding-Finder.html

Or call us Toll-free at:

1-888-231-0075

Farm Funding: Farm Grants & Farm Loans

Fall 2016

Canadian farm grants and farm loans are just some of the funding programs available to farmers to start, and grow their Canadian farm business. There are also tax credits and subsidies directed towards farm businesses.

In order to maximize your chances of success, it is important to start by asking yourself: Why do I want to be a farmer? If the answer is only to make money, then it may not be the best choice for you. If you want to farm because you plan to combine the lifestyle and business of farming, then it’s time to make a plan for your farming future.

A successful farm plan starts by making realistic projections about your access to the land, equipment, labour and funding required to undertake your project. Once you have decided what crops or livestock will perform well in your area you need to establish a plan that takes into account production and marketing issues.

It is often a good idea to seek professional assistance before you expand or start any new farming project. The Canadian Grants Business Center can provide you assistance in accessing the resources to fund your growing farm business.

When you are ready to start or expand your farming business, the Canadian Grants Business Center can help.

Contact us Toll-Free at 1-888-231-0075 or Contact us now to find out more!

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