Farm Improvement and Marketing Cooperatives Loans Act (FIMCLA)

The FIMCLA program remains in place as part of a federal commitment to Canadian agricultural producers. The program was to end March 31, 2006. The program is continued with the understanding that the federal government will consult with industry on how to make the program more effective.

AAFC is now conducting these consultations. Discussion points include potential changes to program parameters, modifications to current delivery mechanisms/processes, and co-operative development issues.

The links to the consultation documents provide consultation session dates and locations. If you are interested in attending any of these sessions or would like to submit comments in writing, please contact Audrey Privé.

For more information on the FIMCLA consultation, contact Rémi Massé or Bob Shalla.

For more information on the consultation session on co-operatives, contact Albert Daoust.

The Farm Income and Marketing Cooperatives Loans Act (FIMCLA) is a federal government guaranteed loans program designed to increase the availability of loans for the purpose of improvement and development of farms and the processing, distribution or marketing of farm products by cooperative associations.

The program facilitates the availability of credit to both farmers and their cooperative associations to improve farm assets, strengthen production and/or improve financial viability.

Eligibility Criteria

Applicants must be individuals, partnerships, corporations or cooperative associations actively engaged in farming in Canada with the intent of making a profit at the time the loan is requested.

To be actively engaged in farming, the applicant must either own or have a leasehold interest in the farm land where the farming activity is currently being performed. Loans may only be made for specific purposes as defined under the Act.

Summary

Looking to finance a new tractor, improve your existing barn or buy additional land? FIMCLA can help with improvement projects. Established in 1988, FIMCLA has helped more than 130 000 farmers and their marketing cooperatives grow their businesses by guaranteeing loans through lending institutions.

Borrowers benefit from advantageous interest rates, lower equity requirements and interesting repayment terms. Individual farmers, farm partnerships and farm corporations can apply for up to $250 000 under FIMCLA while up to $3 million is available for cooperative associations.

The Program...

• encourages investment in new machinery, livestock, buildings and technology and facilitates investment in alternate farming initiatives;
• provides access to intermediate credit through lending institutions such as Chartered Banks, Alberta Treasury Branches, Credit Unions, Caisses Populaires, Trust Companies, Loan Companies and Insurance Companies;
• helps farmers and their cooperatives with their financing needs through guaranteed loans resulting in market expansion, farm innovation, value added-processing and environmentally sustainable farming;
• offers loans for the consolidation or refinancing of debts incurred for eligible loan purposes.

Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland & Labrador, Northwest Territories, Nova Scotia, Nunavut, Ontario, Prince Edward Island, Quebec, Saskatchewan, Yukon Contact(s):
See National Contact.