paul lecomte

Alternative Quebec agricultural youth fund

May 25th 2013

Food Farms Fish and Finance Forum

Paul Lecomte, agronomistDirector General

Alternative Quebec agricultural youth fund

Context

Limitations in capital access

Barriers to entry

Starting and transfer

Small regional enterprises

Financing tools

Support and logistics

Alternative Quebec agricultural youth fund

25 M$ 

FSTQGovernment of Quebec

CRCD

 25 M$

25 M$

Partners

FIRA

Advisory commitee

Support young agricultural entrepreneurs with business start-up, development or transfer project with alternatives financial solutions and venture capital

Mission

Organization

5

Launched March 11, 2011

Staff : • 1 manager (full time)• 3 advisors and • 2 assistants / technicians

Networked with partners and market councelors

Des solutions à l’accès à la propriété pour la relève agricole 6

Types of project

Business start-up

Development

Transfer

Alternative Quebec agricultural youth fund7

Customers profile

18 to 39 years of age

Must have completed or obtained official recognition of education (level III minimum)

$ 30 000 business volume or more at maturity

Legal entities:

Individual, company, corporation, cooperative

Own at least 20 % shares of the company

Des solutions à l’accès à la propriété pour la relève agricole 8

FIRA’s benefits

Organizational

Projects planning

Financial

Access to additional funds

Equity

Access to farm without buying

Alternative Quebec agricultural youth fund

Alternative Quebec agricultural youth fund9

Business Plan

Description / vision / planning

5 years projections

Coaching plan

FIRA’s benefits

Addition to down payment

Priority creditors leverage

No payment of principal or interest for 3 years allowing to start the project and improve liquidity

Loan

11

Loan

We top up down payments

Up to $ 250,000 for 15 years

Leverage creation through second mortgage loan

Attractive rates for risk capital

12

Qualification

Must provide equal amount of funds

Entrepreneurial profile

Viable project with reasonable conditions to succeed

Loan

Alternative Quebec agricultural youth fund13

Equity

Up to $ 500,000

Over a 15 years horizon

Minority participation of FIRA

Expert partners available to enterprise advisory board

Contribution to financial structure

Alternative Quebec agricultural youth fund

Equity examples

Purchase and rental

15

Property acquisition by FIRA

Up to 15 years leases

Tenant ability to terminate lease yearly

Tenant exclusive right of redemption

Fair rent

Avoids the immobilization of start up capital

Eases youth access to agriculture

Purchase and rental

16

Benefits

Exclusive right of redemption through entire lease

Minimizes down payment needs

Establishment / progressive expansion

Des solutions à l’accès à la propriété pour la relève agricole

Paul Lecomte, agr.Chief executive officer1400, boul. de la Rive-SudSaint-Romuald (Québec) G6W 8K7Phone : 1 855 270-FIRA (3472) (Toll free)Fax : 418 834-FIRA (3472)Email : paul.lecomte@lefira.ca

Alternative Quebec Agricultural youth funds

Visit our websitelefira.ca