Young and beginning farmers will find it easier to start and grow their farm businesses with the help of a new $500 million loan program. Agriculture Minister Gerry Ritz and Farm Credit Canada (FCC) President and CEO Greg Stewart introduced the Young Farmer Loan today.
“Agriculture is a key driver of jobs and economic growth here in Canada, and young farmers are vital to the long-term prosperity of the agriculture industry,” said Minister Ritz. “Encouraging young farmers to invest wisely and contribute to a prosperous, modern sector is not only good for agriculture but good for Canada.”
This new loan offers qualified producers who are under 40 years of age loans of up to $500,000 to purchase or improve farmland and buildings. Producers between the ages of 18 and 39 make up approximately 16 per cent of Canadian producers, according to the 2006 Census. The FCC Young Farmer Loan includes features and options that address this demographic, and support their long-term success. These include:
• variable rates at prime plus 0.5% and special fixed rates
• no loan processing fees
“We listen to our customers, and we develop products and services to meet their needs,” said Mr. Stewart. “By allowing young producers to borrow with no fees at affordable rates, the Young Farmer Loan will help them build their businesses and develop a solid credit history. As a responsible lender, we’re excited to see how they use this product to grow their business and the industry.”
The Young Farmer Loan enhances FCC’s suite of existing products and services that support young producers, such as the FCC Transition Loan, FCC Business Planning Award, FCC Learning events and publications, FCC Go Ag! events, and FCC Management software for both accounting and field management
As Canada’s leading agriculture lender, FCC is advancing the business of agriculture. With a healthy portfolio of more than $22 billion and 19 consecutive years of portfolio growth, FCC is strong and stable – committed to serving the industry through all cycles. FCC provides financing, insurance, software, learning programs and other business services to producers, agribusinesses and agri-food operations. FCC employees are passionate about agriculture and committed to the success of customers and the industry.
The Young Farmer Loan enhances FCC’s suite of existing products and services that support young producers, such as the FCC Transition Loan, FCC Business Planning Award, FCC Learning events and publications, FCC Go Ag! events, and FCC Management software for both accounting and field management.