Farm Loan Board Drops Interest Rates

Agriculture and Marketing Minister Ed Lorraine today announced lower interest rates for the Farm Loan Board, as a way to continue promoting and encouraging the development of rural Nova Scotia and support new farmers who traditionally hold longer term loans.

"The Farm Loan Board is a key way for farmers to get assistance to help grow their businesses and, in turn, grow the province's rural economy for the benefit of all Nova Scotians," said Mr. Lorraine. "By setting lower interest rates, the board is once again being a leader in creating an environment for new growth and expansion of an already $1 billion a year industry."

Effective Jan. 1, interest rates are as follows:

• 7.35 per cent for loans up to 14 years (down from 7.5 per cent);

• 7.40 per cent for loans 14 to 19 years (down from 7.75 per cent); and,

• 7.50 per cent for loans 20 to 24 years (down from 7.85 per cent).

These new rates apply to any loan that has not been amortized as of Jan. 1, 1999. If these rates remain unchanged, they will represent over a $1 million interest saving to borrowers during the term of their loans, based on the board's annual $30 million lending portfolio.

"The majority of our new and beginning farmers who have longer term loans will see the greatest benefit from these new rates by having a lower cost of borrowing and being able to develop their operations at a faster rate," said Mr. Lorraine.

"The interest savings will also go a long way to assist those farmers impacted by the severe weather over the last two years."

The rates are in effect until March 31, 1999.

Information on the new rates can be obtained through Board offices in Truro at 902-893-6506 or Kentville at 902-679-6009.