• What types of operations are included under Farming?
• Can a loan be financed to two or more eligible applicants for the purchase of one implement?
• Does a van qualify?
• Does a combine qualify if it is to be used for custom combining?
• Does a Snowmobile qualify?
• Can alpaca, deer, elk, lamas, emu, kiwi (the bird), cassowary, ostrich, rhea, buffalo, and bison be financed under FIMCLA?
• Can a loan be financed under FIMCLA who is boarding horses?
• Do computers qualify?
• Does Software for a computer qualify?
• What kind of buildings are covered by FIMCLA?
• Are Grain Elevators an eligible purpose under the Act?
• Can a lease agreement be financed under FIMCLA?
• Can a loan be financed for a small business on the farm?

Q. What types of operations are included under Farming?

A. 'Farming' means the production of field-grown crops, cultivated or uncultivated and horticultural crops, the raising of livestock, poultry, and fur bearing animals, the production of eggs, milk, honey, maple syrup, tobacco, fibre, ginseng, Christmas trees, sod, fruit trees, wood from wood lots and fodder crops and the production or raising of any other prescribed thing or animal which includes egret, ratite, cassowary, and ruminant.

Q. Can a loan be financed to two or more eligible applicants for the purchase of one implement?

A. Yes. Each person would be equally responsible.

Q. Does a van qualify?

A. Yes. If the van is primarily for farm business. The lender must be able to support the reasoning. (Example: Is the farmer licensing it as a 'farm vehicle'?)

Q. Does a combine qualify if it is to be used for custom combining?

A. No. Unless the combine's primary purpose is being used to improve the operation of the borrower's farming operation therefor the purchase of a combine for custom combining is not an eligible purpose under the Act.

Rationale: The purpose of utilizing the machine for custom work is not an eligible purpose under the act. If the combine is used for off farm custom combining, the depreciation could be of such that the value would not be maintained for the term of the loan.

Q. Does a snowmobile qualify?

A. Yes. If the snowmobile's purpose is for farm work. Again, the lender must be able to support the reasoning.

Q. Can alpaca, deer, elk, lamas, emu, kiwi (the bird), cassowary, ostrich, rhea, buffalo, and bison be financed under FIMCLA?

A. Yes. These all fall into either the ruminant, ratite, or egret categories. With the exception of white tailed deer which are not eligible under a FIMCLA.

Q. Can a loan be financed under FIMCLA who is boarding horses?

A. No. Boarding horses is not considered a farming activity. Horses raised for breeding stock and PMU are eligible under FIMCLA.

Q. Do computers qualify?

A. Yes. Any type of equipment for the improvement of the farming operation qualify under FIMCLA. In the case of computers hardware is eligible plus the cost of installing a line.

Q. Does Software for a computer qualify?

A. If software is included as part of the original purchase it is acceptable. However, additional software purchased is considered an operating cost and is therefore not eligible under a FIMCLA.

Q. What kind of buildings are covered by FIMCLA?

A. Any type of building is OK with the exclusion of principle residence.

Q. Are Grain Elevators an eligible purpose under the Act?

A. Yes. If they are constructed or situated on the farm.

Q. Can a lease agreement be financed under FIMCLA?

A. No. The financing of a lease agreement is not eligible under FIMCLA. An eligible applicant may purchase leased land if it is additional to farm land already owned and being farmed.

Q. Can a loan be financed for a small business on the farm?

A. It would depend on whether or not the eligible borrower would be financing a business that would be in relation to 'Value Added'. ex. a cheese factory on a dairy farm would qualify under FIMCLA as well as a road side store/stand.