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 borrowers. 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.