March 12, 2025
Sincere thanks to the investors in the Fourteenth Offer of Shares and to the many other people who wished to invest. Due to transition from the $6 M limit on investment to $25 M limit, investment was limited to $300,000 for this one year only. The Nova Scotia Securities Commission requires International Financial Regulatory Statement Consent once FarmWorks exceeds $6 M and we are seeking a new independent accounting firm able to issue that Consent. Please know that it was very difficult to defer potential investors and we assured them that Provincial Tax Credits can be carried back three years and forward seven years.
FarmWorks Shareholders are making a very significant difference, from farm to fork, across Nova Scotia, thanks to over 520 investors who have purchased $5,983,300 of shares enabling FarmWorks to lend over $10.7 million to 172 food related businesses that are starting up or expanding. These businesses are providing good food and beverages and helping to grow Nova Scotia’s economy. NS needs many more farms and food related businesses, especially as we deal with challenges affecting the security of our food supply.
Over thirteen years only 11.4% of investments have been redeemed, primarily by people collapsing RRSPs. Some RRSP holders reaching the age of 71 choose to switch to non-RRSP FarmWorks Shares. FarmWorks Directors are working to ensure that as each cohort of investors reaches the end of the third investment term they are encouraged to retain their shares.
Annual investments combined with about $95,000 repaid monthly are used as soon as received to lend to new and growing applicants. As of December 31, 2024, $10,716,400 has been loaned to 172 qualifying businesses.
Loan recipients are carefully chosen by FarmWorks Directors to balance risk and achieve strategic goals: increasing the supply of healthy food, stimulating the economy, supporting people and communities and the environment.
Losses are covered by income and there is no impact on share value. At the end of 2023 there were fewer losses than expected and at the end of December 2024 losses were slightly higher but that was not unforeseen given the lingering effects of COVID and many challenges faced by food providers: input costs, regulations, marketing, transportation costs, climate change impacts, accessing other funds in addition to FarmWorks loans in order to grow businesses, and difficulty finding advisors and mentors who fully understand food businesses.
Strong personal relationships are a characteristic of FarmWorks operations, helping to ensure the success of clients and of the organization. FarmWorks assists clients by providing mentoring and seeking advisors for clients, and by promoting the benefits of local, sustainable food production across the Province. In the words of a client – finding funds and meeting regulatory requirements increases stress, FarmWorks decreases stress.
The security of our supply of healthy, less highly processed, food is becoming less certain. Helping to ensure security for all is a responsibility that FarmWorks does not take lightly – it is our mission. We work diligently to support producers and to help strengthen local food systems. Achieving this goal requires strategic development of infrastructure, distribution systems and increased entrepreneurial ability. FarmWorks’ Directors continue to build on our relationships with the Department of Agriculture, the Farm Loan Board, Perennia, Regulatory Agencies, and Provincial and National food related organizations. Collaborations to share knowledge and resources and to support producers benefit everyone in the current milieu of food shortages and local and global insecurity.
Food production is a key to building new rural and urban economic capacity across this province. Nova Scotia has the people, the land, the climate, and many opportunities to ensure a healthy, profitable, food secure future. Directors, and Shareholders and Clients recognize the potential for this province to benefit from greater investment in food and beverage production, and FarmWorks’ Community Economic Development Investment Fund has become a crucial component of that potential.
What FarmWorks and our clients have accomplished needs to be multiplied and we continually seek options for assisting Nova Scotia to become food secure. The Directors look forward to discussing all opportunities with those who can assist in growing our healthy economy.
The Directors of FarmWorks Investment Co-operative Limited come from across Nova Scotia and bring expertise in agriculture and food production, economic development, education, health, business, finance, sustainability, and the environment.
The date and location of FarmWorks Annual General Meeting will be announced soon.
Linda Best,
Founding and Executive Director, FarmWorks on behalf of the Directors
FarmWorks Community Economic Development Fund Share Offers receive a Certificate of Registration under the Nova Scotia Equity Tax Credit Legislation and non-objection by the Nova Scotia Securities Commission enabling investors who met the criteria set out in the Legislation to purchase shares in FarmWorks CEDIF and receive a personal 35% non-refundable Nova Scotia Equity Tax Credit. Investors may be eligible for further Tax Credits of 20% and 10% at the 5 and 10- year investment anniversaries provided the CEDIF meets Nova Scotia Securities Commission conditions. Shares may be eligible for Federal RRSP tax deferral when invested in FarmWorks through the Canadian Workers Cooperative Federation.
Fourteenth Offer Information:
RRSP Forms for Current and New Investors
Guidelines for investing with links to forms, and mail and email information
