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Vancouver, British Columbia, Canada, 2016/07/16 - Local hops farm to review a potential participation into the EIA and EBC provincial tax refund program. The small business venture capital tax credit encourages equity capital investments in B.C. businesses, further strengthening the hops industry.
Fraser Valley Hop Farms Inc, Is an enterprise responsible for the planting, growing, processing, packaging, marketing and distribution of hops. Given the current market conditions in Canada and international demand. There is significant opportunity for hops farming supplying the craft beer boom.
The company is currently in the process of preliminary review into the provincial government initiative, and has yet to announce a final decision. Should the program be utilized, individuals who purchase shares of an EBC eligible corporation, can apply for a refundable tax credit equal to a 30-per-cent refund. This comes with a conditional maximum of $60,000 annually. Eligible companies enrolled in the provincial program may only deduct the tax credit from British Columbia taxes, otherwise allocated towards standard Income Tax.
Added underlining benefits include an opportunity to work with other local hops farmers to provide and receive farming support for hops. Establish best practices and bulk order supplies help to further reduce cost with larger purchase orders. There is also the opportunity grounded in the fact that the Fraser Valley has the ideal climate for hops farming. The Fraser Valley receives enough precipitation, and daylight during the growing season to support a viable hops farming and craft beer brewing industry.
Capital Corporations working with Fraser Valley Hop Farms Inc, . found at fraservalleyhopfarms.com, under the Small Business Venture gives a pathway for local BC residents eligible agricultural businesses equity. This structure is known as (EIA / EBC) and is ideal for capital partners who want to be strategic with their portfolio while simultaneously showing their support for the local economy. Individuals who purchase shares of an EBC are eligible to receive a refundable tax credit equal to 30-per-cent. However, it is important to note that while there is no annual limit on the tax credit for corporations; the credits are not refundable.
The most feasible options for farming hops depends on several factors. Given that the program allows BC business owners a lower start-up costs, the financial risk is also modest compared to other ventures in a non-farming sector. Fraser Valley Hop Farms has put forward a structured plan to provide processing, marketing and distribution services to local and international craft breweries. The harvested season for hops is annually, and processed for both wet and dry packaging. Fraser Valley Hop Farms plans to harvest their hops and sell them to new or existing buyers almost immediately after harvest season, for maximum efficiency.
Note that to achieve a high quality hop pellet, pelletizing requires the use of specialized equipment to control the temperature of the milling and pelletizing processes to avoid undesirable loss.
Secondary processing required for pelletized hops represents a significant portion of anticipated first year earnings. While most of the cost is initial setup, the (EIA / EBC) provincial program seems like a possible fit for the company, and a serious look into all aspects is now underway. Upon further review, should government program be utilized to further strengthen both the capital partners involved and the hop farms overall competitive advantage within the market place. When a final decision is established, for Fraser Valley Hop Farms Inc, . a public announcement or statement regarding EBC will be made available.