August 2025

Dear Shareholders

The security of supply of healthy, less highly processed, food is increasingly fragile. Helping ensure security for all is FarmWorks’ mission and why, 14 years after its founding, FarmWorks community economic development investment fund (CEDIF) continues to grow.

Security for all requires, to the best of Shareholders’ and volunteer Directors’ ability, support for food providers, assistance with development of strategic infrastructure and distribution systems and raising of awareness of the interconnected benefits of food production. FarmWorks’ Directors continue to build our relationships with the Department of Agriculture, the Farm Loan Board, Perennia, Regulatory Agencies, Departments of Health and Education and Finance and food related organizations. Collaborations to share knowledge and resources and support producers benefit everyone in the current environment of food shortages and local and global insecurity.

As Shareholders, your investments in FarmWorks are making a significant difference, enabling FarmWorks to lend over $11 million to 172 food related businesses that are starting up or expanding. These businesses are providing good food and beverages but NS needs many more farms and food related businesses, and FarmWorks needs many more investors to support providers, especially as NS deal with increasing local and global challenges affecting the security of our food supply.

The challenges are becoming more evident – 20% decrease in farms from 2016 to 2021, lack of availability of abattoirs and processing, commercial reluctance to lend to food businesses, mostly imported ultra-processed food displacing healthier foods, too-frequently negative balance sheets, drought and other climate-related issues – and the solutions are not available off the shelf. FarmWorks is unique in that investments are made in a wide range of businesses that support primary producers.       

Increasing the profitability of production is a key to food security. Producers are able to provide more food and contribute to rural and urban economic capacity that multiplies across this province. Nova Scotia has the people, the land, the climate, and the culture 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’ CEDIF is a crucial component of that potential. 

Each FarmWorks Share Offer has received a Certificate of Registration under the Nova Scotia Equity Tax Credit Legislation and non-objection by the Nova Scotia Securities Commission, enabling investors who meet 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 RRSP tax deferral when invested in FarmWorks through the Canadian Workers Cooperative Federation. Annual Offer investments combined with about $95,000 repaid monthly are used as soon as received to lend to new and growing applicants. Every $100 share helps grow a local food related business.

Loan recipients are 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.

Strong personal relationships are a characteristic of FarmWorks’ operations, helping ensure the success of clients and of the organization. FarmWorks supports clients by providing mentoring and seeking advisors for them, 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.

Losses are covered by income over time without an overall impact on share value. There were losses in 2024 and it is expected that there will be losses by the end of 2025 due to the lingering effects of COVID and the many other challenges faced by food providers: input costs, regulations, marketing of local products, transportation costs, climate change impacts, inability to access other funds in addition to FarmWorks loans in order to grow businesses, and difficulty finding advisors and mentors who fully understand food businesses. Overall losses to 2023 were 3% of total loans and this continues to be our target going forward. We are lending, as a community, in an economic sector that needs more support than is readily available because it is crucial for our lives and our future.

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 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’ CEDIF is a crucial component of that potential.  

Our dedicated, determined, hard-working, community engaged clients are accomplishing small and large miracles  which need to be multiplied, and FarmWorks is continually seeking opportunities to assist more food businesses that can help Nova Scotians to be more food secure.

The Executive Summary of the 2023 Survey of FarmWorks Economic and Social Impacts provides an overview of outcomes: before receiving funding 30% of applicants were not in operation; 52% were seeking loans to improve their business outcomes; 67% indicated that their business would not have succeeded without FarmWorks; 89% said the loan enabled their business to expand production; 69% were able to borrow additional funds after receiving a FarmWorks loan; 68% indicated that business outcomes were better because of FarmWorks mentoring, networking, and promotion.

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.

Sincerely,

Linda, on behalf of the Directors