Bulletin – January 2007
Small Business Eligibility – Farming
Is a farming business eligible for a loan under the CSBF Act? No, a small business that is engaged in the "business of farming" is not eligible to obtain a loan under CSBF Program. Although the CSBF Act does not have a definition of farming, the Guidelines (Item 1.2, Section A) (PDF Version, 1.02 KB — 84 pages) do describe the type of farming businesses that are ineligible:
- Agricultural industries under Major Group 01 of the Standard Industrial Classification (SIC) (see Appendix A pages 2 to 4 attached). In general, such industries include livestock farms, animal specialties such as horse farms and fur and skin ranches, field crop farms, fruit and vegetable farms, horticultural specialties (mushrooms, greenhouse products), and combination farms; and
- Small businesses that generate more than 50% of their gross annual revenues from these agricultural industries.
The Farm Improvement and Marketing Cooperatives Loans Act (FIMCLA) is the federal government's program for loans to farming businesses. The requirements for eligibility for loans under CSBFA and FIMCLA are particular to each program and are not dependent on the eligibility of each other.
Even though the agricultural industries mentioned above are not eligible, there are service industries incidental to agriculture that can indeed apply for a CSBF loan. These are described in Group 02 of the SIC (see Appendix B, page 5 attached) and are summarized as follows:
- Services incidental to livestock and animals such as veterinary, farm animal breeding and poultry;
- Services incidental to agricultural crops such as soil preparation, planting, and cultivating, crop dusting and spraying, harvesting, bailing and threshing; and
- Other services such as agricultural and management consulting.
Small Business Eligibility Co-operatives
Are co-operatives eligible for CSBF loans? Co-operatives are eligible businesses provided they fulfill the conditions in the definition of "small business" and in particular the following:
- they carry on business in Canada ;
- their purpose is for profit; and
- they are not engaged in "farming" as outlined above.
Should you wish to discuss any particular small business situation related to farming, service industries incidental to farming or co-operatives, please contact us. Should you wish a written ruling on any eligibility issue, please do so in writing by e-mail at the address shown below or by ordinary mail at the address shown on our website.
Loan Registration Form - Business Number
Lenders are reminded that the business number assigned by the Canada Revenue Agency (CRA) (box 6 of the loan registration form) is mandatory at the time of registration unless the small business is exempted from obtaining a business number. Please note that the business number is the one provided by CRA and not the provincial sales tax number.
In cases where a new small business has not received its business number at the time of the loan registration, lenders may indicate "to follow" in box 6 of the form. Lenders should provide the number to the CSBF Program as soon as they receive it. This will eliminate subsequent requests from the Directorate for the business number.
If you have any comments on the points raised by these subjects please feel free to contact us.
We wish everyone a very happy and prosperous New Year in 2007
Toll Free: 1-866-959-1699
Email: csbfp-pfpec@ic.gc.ca
Web site: www.ic.gc.ca/csbfp
Appendix A
Agricultural Industries
01
Agricultural Industries
011
Livestock Farms (Except Animal Specialties)
Farms on which more than 50 percent of the gross
agricultural revenue is derived from sales of dairy products,
cattle, hogs, poultry and eggs, sheep and goats, or from a
combination of these livestock and livestock products.
0111
Dairy Farms
Farms on which more than 50 percent of the gross
agricultural revenue is derived from sales of dairy products
such as milk and cream, raw. Included are farms with 40 percent or more of gross agricultural revenue derived from sales
of dairy products and 10 percent or more of the agricultural
revenue from raising and selling dairy cattle. Farms with
more than 50 percent of the gross agricultural revenue
derived from the raising and selling of dairy cattle are
classified in 0112 - Cattle Farms.
0112
Cattle Farms
Farms on which more than 50 percent of the gross
agricultural revenue is derived from sales of cattle. Beef
cattle feedlots are classified in this industry.
Establishments primarily engaged in collecting and selling
bull semen are classified in 0212 - Farm Animal Breeding
Services (Except Poultry). Farms on which more than 50 percent of the gross agricultural revenue is derived from sales
of dairy products are classified in 0111 - Dairy Farms.
0113
Hog Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of hogs, weanling (feeder) pigs and/or operating hog feedlots.
0114
Poultry and Egg Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of poultry and eggs. Pheasant farms are classified in 0129 - Other Animal Specialty Farms n.e.c. Chick hatcheries and establishments primarily engaged in egg grading are classified in 0213 - Poultry Services.
0115
Sheep and Goat Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of sheep, goats and associated products such as wool and goat's milk.
0119
Livestock Combination Farms
Farms selling a combination of livestock and livestock products in which no single product in another class of this Industry Group accounts for more than 50 percent of the gross agricultural revenue.
012
Other Animal Specialty Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of honey and other apiary products, horses, furs (ranch) and other animal specialties not elsewhere classified. Fish farms are classified in Industry Group 031 - Fishing Industries.
0121
Honey and Other Apiary Product Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of honey, beeswax and bees.
0122
Horse and Other Equine Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of horses and other equines.
0123
Furs and Skins, Ranch
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of fur bearing animals raised in captivity and/or fur pelts. Establishments primarily engaged in trapping and skinning wild animals are classified in 0331 - Furs and Skins, Wild and those primarily engaged in dressing and dyeing furs and skins are classified in 3999 - Other Manufactured Products Industries n.e.c.
0129
Other Animal Specialty Farms n.e.c.
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of animals not specified in preceding classes.
013
Field Crop Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of cereal grains, oilseeds, grain corn, fodder, pulses, tobacco and field roots.
0131
Wheat Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of wheat.
0132
Small-Grain Farms (Except Wheat)
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of small grains. Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of wheat are classified in 0131 - Wheat Farms and those with more than 50 percent of the gross agricultural revenue derived from sales of faba beans for forage are classified in 0135 - Forage, Seed and Hay Farms.
0133
Oilseed Farms (Except Corn)
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of oilseeds. Farms specializing in growing corn for grain are classified in 0134 - Grain Corn Farms those specializing in growing corn for fodder are classified in 0135 - Forage, Seed and Hay Farms and those specializing in growing sweet corn are classified in 0152 - Other Vegetable Farms.
0134
Grain Corn Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of corn except corn grown for fodder and sweet corn. Farms specializing in growing corn for fodder are classified in 0135 - Forage, Seed and Hay Farms and those specializing in growing sweet corn are classified in 0152 - Other Vegetable Farms.
0135
Forage, Seed and Hay Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of forage, forage seeds, hay and clover. Included are farms primarily engaged in producing grass seed and corn for fodder. Farms specializing in producing vegetable seeds are classified in 0152 - Other Vegetable Farms those producing flower seeds are classified in 0163 - Nursery Products and those specializing in growing corn for grain are classified in 0134 - Grain Corn Farms.
0136
Dry Field Pea and Bean Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of dried field beans and peas (pulses). Farms specializing in producing green peas and beans are classified in 0152 - Other Vegetable Farms.
0137
Tobacco Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of tobacco.
0138
Potato Farms
Farms on which more than 50 percent of gross agricultural revenue is derived from sales of potatoes.
0139
Other Field Crop Farms
Farms on which more than 50 percent of gross agricultural revenue is derived from sales of field crops, including roots, not elsewhere classified. Farms specializing in growing potatoes are classified in 0138 - Potato Farms and those specializing in growing turnips and other roots for human consumption are classified in 0152 - Other Vegetable Farms.
014
Field Crop Combination Farms
0141
Field Crop Combination Farms
Farms selling a combination of field crops, in which no single product in another class in Industry Group 013 - Field Crop Farms accounts for more than 50 percent of their gross agricultural revenue.
015
Fruit and Other Vegetable Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of fruits and/or other vegetables.
0151
Fruit Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of fruit including tree fruit, small fruit and tree nuts.
0152
Other Vegetable Farms
Farms on which more than 50 percent of the gross agricultural revenue is derived from sales of vegetables not elsewhere classified. Included are farms specializing in producing vegetable seeds. Farms specializing in growing root vegetables for animal feed are classified in 0139 - Other Field Crop Farms those specializing in growing dried field peas and beans are classified in 0136 - Dry Field Pea and Bean Farms those specializing in growing corn for grain are classified in 0134 - Grain Corn Farms and those specializing in growing greenhouse vegetables are classified in 0162 - Greenhouse Products.
0159
Fruit and Vegetable Combination Farms
Farms selling a combination of fruit and vegetables in which no single product in another class in this Industry Group accounts for more than 50 percent of the gross agricultural revenue.
016
Horticultural Specialties
Establishments in which more than 50 percent of the gross agricultural revenue is derived from sales of mushrooms, greenhouse products, nursery plants and other horticultural specialties.
0161
Mushrooms
Establishments in which more than 50 percent of the gross agricultural revenue is derived from sales of mushrooms.
0162
Greenhouse Products
Establishments in which more than 50 percent of the gross agricultural revenue is derived from sales of greenhouse products. Ornamental shrubs and trees and field grown flowers are classified in 0163 - Nursery Products.
0163
Nursery Products
Establishments in which more than 50 percent of the gross agricultural revenue is derived from sales of plant nursery products grown out-of-doors. Included are sod farms and those specializing in producing flower seeds. Establishments primarily engaged in growing forest nursery stock are classified in 0511 - Forestry Services Industry.
0169
Other Horticultural Specialties
Establishments in which more than 50 percent of the gross agricultural revenue is derived from sales of horticultural products not elsewhere classified. Included are maple syrup operations and Christmas tree farms.
017;
Livestock, Field Crop and Horticultural CombinationFarms
0171
Livestock, Field Crop and Horticultural CombinationFarms
Farms selling a combination of livestock and plants in which no single product in another class in this division accounts for more than 50 percent of the gross agricultural revenue.
Appendix B
Service Industries Incidental to Agriculture
02
Service Industries Incidental to Agriculture
021
Services Incidental to Livestock and AnimalSpecialties
Establishments primarily engaged in providing services to livestock and animals such as veterinary services, animal breeding services and poultry services.
0211
Veterinary Services
Establishments primarily engaged in providing medical services to animals including household pets.
0212
Farm Animal Breeding Services (Except Poultry)
Establishments primarily engaged in providing animal husbandry services. Included are establishments primarily engaged in collecting and selling bull semen. Establishments primarily engaged in poultry breeding are classified in 0213 - Poultry Services.
0213
Poultry Services
Establishments primarily engaged in providing services to poultry farms. Chick hatcheries are included here.
0219
Other Services Incidental to Livestock and Animal Specialties
Establishments primarily engaged in providing services incidental to livestock and animal specialties not elsewhere classified. Establishments primarily engaged in grading poultry eggs are classified in 0213 - Poultry Services.
022
Services Incidental to Agricultural Crops
Establishments primarily engaged in providing soil preparation, planting and cultivating services.
0222
Crop Dusting and Spraying Services
Establishments primarily engaged in providing services to protect crops and plants from weeds, insects and fungus damage by dusting or spraying with chemicals. Establishments primarily engaged in aerial crop dusting are classified in 4513 - Non-scheduled Air Transport, Specialty, Industry.
0223
Harvesting, Baling and Threshing Services
Establishments primarily engaged in providing harvesting, baling and threshing services. Establishments primarily engaged in fruit picking are classified in 0229 - Other Services Incidental to Agricultural Crops.
0229
Other Services Incidental to Agricultural Crops
Establishments primarily engaged in providing services incidental to crops and plants not elsewhere classified. Establishments primarily engaged in grading eggs are classified in 0213 - Poultry Services.
023
Other Services Incidental to Agriculture
Establishments primarily engaged in providing services not applied directly to livestock or crops such as agricultural management and consulting services.
0231
Agricultural Management and Consulting Services
Establishments primarily engaged in providing farm management and consulting services.
0239
Other Services Incidental to Agriculture n.e.c.
Establishments primarily engaged in providing services to agriculture not elsewhere classified.
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