News Release Archive

The Nova Scotia Farm Loan Board will be implementing a new loan
rate policy July 1 in response to industry requests, Agriculture
Minister Guy Brown announced today.

The lending rate policy is part of a set of Agricultural and
Rural Credit Act regulation changes recently approved by the
Legislative Council. Loan rates will be established quarterly and
the term rates will be guaranteed for the life of the loan.

Effective July 1, 10-year loans will be available at 7.5 per
cent. Loans of 15 years will be at 7.75 per cent and 20 years at
7.95 per cent. Borrowers will also be able to take advantage of
early payment options and flexible amortization periods.

Loan payment deferrals will be available for certain farm
business situations. For example, some commodities take years to
establish before there is any income from the crop. Deferral of
payments will improve cash flow during crop development and
should increase chances for success for new business ventures.

Clients will be able to borrow funds in conjunction with existing
loans, or existing loans can be transferred to a new agreement if
lower interest rates can be realized. Borrowers can also
accelerate their repayment schedule. Annual options to repay part
of the principal or increase payments will also benefit

"The Nova Scotia Farm Loan Board will continue to focus on
long-term agricultural lending, providing clients stable interest
rates," said board chairman Ted Ueffing, who welcomed the new
options. "The board plans to continue to concentrate on beginning
and developing farm operations."

The regulations also enable the board to assist primary producers
in diversification for value-added products.

The Nova Scotia Farm Loan Board, through its lending program,
assists farm businesses in strengthening agriculture for a
stronger rural Nova Scotia. The new programs will have a positive
impact on the operations of the Timber Loan Board, which is also
administered by the Farm Loan Board.


Contact: Derrick R. Jamieson

trp                        June 26, 1997 - 10:15 a.m.