Farm Credit Canada is making another $50 million available to young farmers through its Accelerator Loan program.
The program, which is aimed at farmers younger than 40, was introduced in 2006, and to date farmers have taken out loans totalling more than $40 million.
FCC vice-president Lyndon Carlson said the program addresses the issues of down payment, cash flow, equity building and asset transfer by offering as low as zero percent down and interest-only payments on a portion of the loan with a competitive rate.
“We know farm transfers are not easy and we’re listening to our customers to understand their needs,” he said.
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He noted that farmer operators older than 55 hold $86 billion in farm assets that will soon be passed to the next generation.
“This loan program makes this process easier for both the buyer and the seller.”
The loans require sellers who do not need full payment up front. The low down payments and flexible payment options provide young buyers with cash flow to build up their operation and equity.
Farmers taking out the loan are also provided with a free FCC management training workshop on financial management, human resource management, goal setting and managing price risk.
They also receive FCC’s farm financial management software AgExpert Analysis.
Those who sell their property through the program receive a free workshop on farm succession and estate planning.
Carlson said the Accelerator Loan is part of more than $500 million in loans to young farmers FCC approved in 2006.
