April 13, 2012, Saskatoon — 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 have introduced the Young Farmer Loan.
“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 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 per cent and special fixed rates.
• No loan processing fees.
“We listen to our customers, and we develop products and services to meet their needs,” said 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.”
Click here for more information on the FCC Young Farmer Loan program.