A major insurer and lender is expanding eligibility and incentives for a loan dedicated to young and new agricultural producers in Alberta.
The Agricultural Financial Services Corporation’s (AFSC) Next Generation Loan program is meant to provide these producers with “a consistent source of fixed-rate term loans to establish their own farming operation,” according to the AFSC website. AFSC is an Alberta Crown corporation. The following changes to the program will take effect September 1:
- Producers of any age who are entering or returning to farming are eligible for a one per cent interest rate incentive, while before it was only available to those under age 40.
- Producers may receive an interest rate incentive on their total lifetime loan principal up to $1.5 million, an increase from the previous $1 million.
- Applicants now require 20 per cent ownership in a farming operation, down from 25 per cent.
- Eligible borrowers can make “interest-only” payments on their loans for up to five years, up from the current two years.
A July 30 provincial news release stated, “Over the past 20 years, the number of young and middle-aged producers in agriculture has seen steep declines, while the number of farmers over 55 has increased. Alberta’s government is aiming to help reverse that trend with changes to Agriculture Financial Services Corporation (AFSC)’s Next Generation Loan Program (Next Gen).”
Darryl Kay, CEO of AFSC, wrote, “The changes to the Next Generation Loan program are key to the long-term sustainability and growth of Alberta’s agriculture industry. I’m proud that AFSC will be here to assist these new and beginning farmers as they get started in farming and build on the work of earlier generations.”
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“Succession planning is front of mind for farmers, especially as we expect to see a growing number of farms transition to the next generation over the next several years,” wrote Scott Jesperson, vice-chair of Alberta Grains. “Programs like this that help reduce barriers for new and next generation farmers, help to ensure the viability of the crop sector in Alberta into the future.”
More information about the Next Generation Loan is available on the AFSC website.
