Tile Drain Loan Application

The installation of 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.

Landowners in a municipality in Ontario 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. Landowners are eligible for a loan of up to 75% of the value of the tile drainage work, but the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) and the local municipality may have policies that further restrict the total dollar amount of any loan in any given year.

The provincial government sets the program interest rate at a competitive level. This rate is fixed for the full term of the loan, regardless of changes in market interest rates. The interest rate is calculated annually, not semi-annually, as is done by most financial institutions.

Contact the Township of Howick Municipal Office at 519-335-3208 for more information on current tile loan policies and interest rates.

Tile Drain Loan Application

For more Information - view the fact sheet for the Tile Loan Program