3. diminish in number, if we continue to rely on the global
food system to sustain us and if that system fails
then the dire situation of our farmers today will become
Or we can take steps now to re-‐create a local,
sustainable, healthy food system that gives our
farmers the livelihood they deserve, and provides
reliable, healthy food to our families
Opportunities and Challenges in Atlantic Agriculture: Silver Donald Cameron , Chris Benjamin.
Jennifer Scott Consulting, August 30, 2010.
Challenges
4. Challenges
Over 50 years production of food in NS has
decreased from approximately 60% sufficiency
to about 15% (8% supply managed, 5% crops,
2% livestock) and exports have declined
Farms have decreased from 12,518 to 3,905
Farm population decreased from 58,000 to 8,000
Loss of communities, food security, economy
Strategies are needed to help reverse the trend
6. Challenges
http://www.statcan.gc.ca/pub/95-‐632-‐
x/2007000/t/4185570-‐eng.htm#12
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
1921 1931 1941 1951 1961 1971 1981 1991 2001 2006 2011
Farms in Nova Scotia
0
50000
100000
150000
200000
250000
300000
1921 1931 1941 1951 1961 1971 1981 1991 2001 2006 2011
Land in Crops in Nova Scotia
In 1961 about 12,518 farms
In 1999 about 4,200
In 2006 about 3,795
In 2011 there were 3,905
Can we help ensure that the turn
around will continue?
1.6 million ha, or 21% of the
is suitable
population could be fed by the
production from just 490,444 ha
of farmland less than half our
physical capacity. (GPI J Scott)
Challenges -‐ Opportunities
8. Opportunities
Production was a cornerstone of rural NS and can
be again new strategies are needed
Availability of healthy food is becoming crucial in
light of global issues
Production and multiplier effects create social
and economic gains
Helps keep rural landscapes and communities
vibrant, preserves local culture and history,
attracts tourists and enhances quality of life
9. Community Economic Development
Investment Fund (CEDIF)
In 1998 NS established the CEDIF program to encourage
residents to invest in NS businesses
Through the sale of shares a pool of capital is formed to
operate or invest in profit-‐oriented local businesses
CEDIF cannot be charitable, non-‐taxable, or not-‐for-‐profit
Must have at least six directors elected from the defined
community
Raising capital from community through public offering
requires Department of Finance Equity Tax Credit
Certificate and Securities Commission approval.
10. Currently, less than 2% of NS investment capital (RRSPs,
mutual funds, stocks) remains in the province.
CEDIF program matches local investors with local business
helps local businesses access capital -‐ enables them to
start or stay in communities providing jobs and services
CEDIFs that provide consistent returns on investment
have helped change attitudes toward investing locally
Program has grown to support more than 60 projects. Almost
7,500 Nova Scotians have invested more than $56 million
in small-‐ to medium-‐sized local companies, fuelling
economic growth throughout the province.
Community Economic Development
Investment Funds
11. 35% non-‐refundable NS tax credit with minimum
five year investment
Additional 20% for 10 year hold, and 10% for 15
year hold
RRSP eligible in addition to the NS Tax credit
Shareholder input in investment decisions
through the board of directors
Return on investments depends on performance
of the business(s) in the fund
Community Economic Development
Investment Funds
12. CEDIF
May 06, 2013 NS Gov. News Release
Homegrown Program Recognized Internationally
Community-‐based businesses are creating jobs and helping
strengthen local economies in the province, with help
from an NS program getting international attention.
World Economic Forum recognized NS Community
Economic Development Investment Funds program as a
successful example of fostering social innovation and
entrepreneurship, and local economic development. The
program was acknowledged during the forum's Social
Innovation Summit in Peru recently.
http://novascotia.ca/news/release/?id=20130506004
Community Economic Development
Investment Funds
13. FarmWorks Investment Co-‐operative Limited
FarmWorks was founded in May 2011 to provide a way
for citizens to invest in farms and food production
In November 2011 FarmWorks established a CEDIF with all
of investment
FarmWorks provides a means for citizens to efficiently
and effectively invest in sustainable agriculture and
food production in the Province.
FarmWorks provides loans to multiple well-‐managed
enterprises scaling up or launching agricultural and
food-‐related businesses in NS.
14.
15.
16. CEDIF Promotion in 2013
FarmWorks CEDIF Promotion FarmWorks CEDIF
Governance
Responsibilities of Executive and Directors
By-‐laws
Ethics, Confidentiality, Transparency, Accountability
Vision
Mission
Objectives including Board Sustainability
Business Plan
Outcome Measurements Clients and Board
17. Richard Melvin Chair
Melvin Farms, Interim Chair NS Food Policy Council,
Past President NS Federation of Agriculture
Ann Anderson Vice-Chair
Educator, Wolfville Community Foundation, Friends of Agriculture
Linda Best Secretary
Microbiologist, Friends of Agriculture, NS Food Policy Council
Kris Keddy Treasurer
Financial Consultant, Investors Group, Ag. Production Management
Stephen Anderson Director
Partner, Food Economy Group
Alison Scott Butler Director
Alicia Lake Director
Patricia Vanaman Independent Director
Tri County Local Food Network, Community University Research
Robert MacEachern Independent Director
Common Roots Garden, Sociologist, Policy Analyst
18. Gordon Caldwell
Partner, Grant Thornton Accounting
Gordon Michael
Continuing Education SMU, Food Alliance,
Former Executive Director FMIC CEDIF
Jeff Moore
Former CEO Just Us! Coffee,
Chair Just Us! CEDIF
Thomas Krausse
Dandelion Community Investment
Cooperative Limited
Gary Morton
Partner Morton Horticultural Consulting
Jonathan McClelland
NS Co-op Council Business
Development Officer
Edith Callaghan
Professor Manning School of Business, Acadia
Av Singh
Organic & Rural Infrastructure Specialist, Perennia
Hank Bosveld
Bosveld Fruit Farm, NS Farm Loan Board
Jo Anne Fewer
CEO Perennia,
Seconded to Building Our New Economy
Susan Carroll
Restaurant, Wolfville
Charles Keddy
Charles Keddy Farms
Rupert Jannasch
Ironwood Farm
Duncan Ebata
Business Acadia, Web, Marketing
Ross Piercey
Business & Quality Consultant
John Aylward
Venture Solutions CB
Peter Hicklenton
Crop Production Systems Research
Jeremy White
Engineer, Marketing, Big Spruce
19. CEDIF Promotion in 2013
FarmWorks CEDIF Promotion FarmWorks CEDIF Promotion
In January and February of 2012 FarmWorks held 22
public meetings across NS, and 20 meetings in 2013
In 2012 $223,500 invested by 102 shareholders
In 2013 $225,300 invested by 78 shareholders
Within 15 months $448,800 raised next Offer October
We are also building awareness of the positive impact
of food-‐related businesses on
the economy of NS through
the Food Grows Here strategy
20. Investment
35% Equity
Tax Credit
(5 yr hold)
Current
Year
+20% Equity
Tax Credit
(10 yr hold)
End year 5
+10% Equity
Tax Credit
(15 yr hold)
End year 10
Total
Equity Tax
Credit
After 15
Years
Taxable
Income
Before RRSP
Deductions/
Tax Deferred
Potential
Total Tax
Deferrals
& Credits
Preserved
Capital + Tax
Benefits
+ Potential
2% Dividend
$100 $35 $20 $10 $65 -‐ -‐ -‐ $65 $195
$1,000 $350 $200 $100 $650 -‐ -‐ -‐ $650 $1,950
$2,000 $700 $400 $200 $1,300
$40,000/
$1,498
$2,798 $5,398
$5,000 $1,750 $1,000 $500 $3,250
$40,000/
$1,498
$4,748 $11,248
$10,000 $3,500 $2,000 $1,000 $6,500
$80,000/
$2,996
$10,367 $22,496
NS TAX CREDIT (NS Department of Finance)
RRSP Tax Deferral (Federal)
CAPITAL PRESERVATION (Diligence)
FARMWORKS DIVIDENDS (Potential)
21. FarmWorks Investment Co-‐operative Limited
FarmWorks lends to multiple enterprises that have the
potential for minimum 10% increase in production and
profitability
Mentors, supports and helps facilitate farm and food-‐
related innovation and diversification in partnership
with government and other organizations
Promotes investing locally and buying local food for
health, economic, social, environmental and other
benefits that result from growing and processing food
in Nova Scotia
22. Process for Applicants
Preliminary Application
no fees
confidentiality agreement
Business Plan and three years financial projections
Reviewers Evaluation
consultations with Applicant
Board Decision
Disbursement
unsecured debt
flexible terms
no early repayment penalty
Ongoing mentoring
Annual Financial Statements
23. Reviewer Evaluations
Section Total
Character Rank 1 to 20
Commitment Rank 1 to 20
Management Rank 1 to 25
Business Plan Markets Rank 1 to 25
Business Plan Materials/Methods Rank 1 to 25
Business Plan Financials Rank 1 to 25
Viability Rank 1 to 60
Total 1 200
Less than 130 do not proceed, 130 160 reapply, greater than 160 proceed
24. Outcome Measures
Businesses
# meeting and exceeding 10% increase in production
# meeting and exceeding 10% increase in profitability
# of mentoring interactions and type
# of enterprises repaying loans
Board
# of interactions with businesses
# of interactions with investors
# of public meetings and communications
# of Farmworks.ca website and social media interactions
25. Outcome Measures
Businesses
2012 Shareholder investment $223,500
12 Loans $217,000
2013 Shareholder Investment $225,300
4 Loans to date $72,000
Under consideration $120,000
Ongoing contact and mentoring
Loans at 6% for 5 years are being repaid and
principal and interest are available for
reinvestment
27. Outcome Measures
Board
sessions, AGM, multiple Directors meetings,
approximately 30 hours per applicant, participated
in 12 food-‐related events, many hours on
FarmWorks.ca, Facebook, Tweets
-‐related
events, media
Friends of Agriculture Society has been established to
cover educational costs in support of FarmWorks
28. FarmWorks Model Is Transferable to
Other Communities
CEDIF program helps communities create tangible results
from local efforts as they take charge of their own
initiatives by making local investment decisions.
The Community Economic Development Business (CEBD)
program has been created as part of the Prince Edward
Island Rural Action Plan to support local investment.
Their first CEBD is modeled on FarmWorks.
Manitoba's Community Enterprise Development Tax Credit
is five years old and $1.9 million has been invested in 12
community enterprises
