News
FCC revamps loan terms to streamline farm, agri-food business transfers

Farm Credit Canada (FCC) has announced adjustments to the terms of its Transition Loan to improve the process of transferring agriculture and agri-food business assets between sellers and buyers.

In a recent news release, the financial services provider said the new terms come at a time when Canada’s agriculture and food system is sitting on more than $50 billion in farm assets which are expected to be transferred in the next 10 years.

The updated loan terms will allow disbursements to the seller over a period that extends to 10 years, the release said. It adds that the loan is available for farms, agribusinesses or food businesses going through changes in ownership, within or outside of the family.

According to the release, the seller is guaranteed full payment of the sale proceeds by FCC, a customized payment schedule for up to 10 years and the opportunity to support a next generation entrepreneur.

For the buyer, the release said,e the new terms do not require upfront capital for a down payment, provide flexibility to choose between improving cash flow or building equity and include the company’s AgExpert software.

“One of the most consistent challenges faced by Canadian producers is transitioning their operations to either family or an outside qualified buyer. It is complex, nuanced and emotional,” said Justine Hendricks, FCC president and chief executive officer, in the release. “Whether the buyers are new to the sector or not, this product is focused on delivering peace of mind and flexibility to Canadian agriculture and agri-food producers.”

Read more from the FCC.