RSS IconRSS Print IconPrinter Friendly Text Size Minus icon Plus icon

Tile Loans

Installing tile drainage is a very common land improvement practice among farmers in Ontario. Corrugated plastic tubing, clay and concrete drain tile are installed beneath the surface of agricultural land to drain excess water from the crop root zone. The benefits of tile drainage for crop productivity, farm efficiency and even for reducing environmental impacts have been studied and are generally well known to farmers.

In Ontario, the Tile Loan Program, authorized by the Tile Drainage Act provides loans to agricultural property owners to help them finance these tile drainage projects.

The Program in a Nutshell

Landowners in Perth East planning to install a tile drainage system on their agricultural land are eligible for a tile loan under this program.

  • All tile loans have 10-year terms, and repayments are made annually with your property tax instalments.
  • Landowners are eligible for a loan of up to 75% of the value of the tile drainage work, up to $50,000
  • The provincial government sets the program interest rate .This rate is fixed for the full term of the loan, regardless of changes in market interest rates. The interest rate is calculated annually. The current interest rate is 6%.

The application process is quite simple. TIle Loan Information Sheet and the Tile Loan Application, are available online (or at the Municipal Office), and must be submitted to Perth East Council. Once Council approves the application, the owner arranges to have the work completed by a licensed tile drainage contractor (for more information see the OMAFRA Factsheet Agricultural Drainage Licensing. The Township will inspect the work.

The Township collects the loan repayments from the owner and remits them to OMAFRA. Defaulted payments are rare but are treated in the same manner as unpaid taxes. The loan can be repaid in full at any time. Contact Wendy McMurray, (519)595-2800 ext. 247 to find out the amount still owing at the time of your proposed payout date.

Is Your Farm Tiled?

You can visit the Agricultural Information Atlas site - once past the agreement of terms, you will be able to zoom to your property and see the random and systematic tile that exists. Please note that this map is not provided by the Township of Perth East, so if you have any questions about the map or that website, please contact OMAFRA.