Young farmers offered new loans for land, buildings

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Canadian farmers up to age thirtysomething are being offered loans to help them improve their operations by buying or upgrading land or farm buildings.

Farm Credit Canada and the federal government on Thursday rolled out a new Young Farmer Loan product, featuring variable rates at prime plus 0.5 per cent, plus no loan processing fees. "Special fixed rates" are also available.

"Qualified producers" under 40 years of age can get loans of up to $500,000 through FCC through this program, budgeted for up to $500 million, the federal ag lending agency said.

The loans must go toward the purchase of "agriculture-related assets," FCC said. "Even if you have limited credit experience, by putting together a sound plan, you can purchase farm-related assets."

The loans, "normally secured with real property," can be repaid in monthly, quarterly, semi-annual or annual payments, FCC said.

The loan?s features and options were expected to address the needs of the age-18-to-39 demographic, which, during the 2006 federal Census, made up about 16 per cent of Canadian producers.

Ag groups hailing FCC?s announcement included Dairy Farmers of Canada, noting the farmers in its sector are "generally younger," with an average age of 47 in 2006 compared to the average age of 52 across all Canadian ag sectors.

Read more at http://agcanada.com/daily/young-farmers-offered-new-loans-for-land-buildings/
 
 
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