The Next Generation Loan Program provides new entrants and young agricultural producers with a consistent source of fixed-rate term loans to establish their own farming operation.

This program facilitates succession to the next generation by offering a wide variety of eligible uses including land purchase, quota, equipment purchase, building development, livestock inventory, working capital and more.

Applicants must meet one of the following eligibility requirements:

  • Under the age of 40 at the time of application.
  • In the case of joint applications, 50 per cent of members must be under the age of 40.
  • In the case of corporation applications, 25 per cent of ownership must be under age of 40.

Applicants who are over 40 years of age at the time of application, must meet the following eligibility requirements:

  • Less than three years farming history,
  • Farm income under $10,000 for three of last five years.

Benefits

The Next Generation Loan Program can be used for a variety of purposes for your new or existing farm operation.

  • Land purchase
  • Quota
  • Equipment purchase
  • Farm building construction
  • Home construction
  • Breeding livestock inventory
  • Working capital
  • Share purchase
  • Restructure existing debt

Features

  • Next Generation Loan Program offers various fixed-rate terms up to 20 years with a maximum amortization of 35 years
  • Loans can be prepaid or paid in full at any time without penalty
  • Long-term, competitive interest rates
  • Payment schedule to fit your cash flow
  • No annual fees
  • AFSC lending products have a maximum lending limit of $15 million per individual or any group of connected individuals or companies.

Young Producer Incentive

At the time of application, applicants who have successfully qualified for the Next Generation Loan Program and are under 40 years of age may be eligible for a one per cent rate reduction for a maximum period of five years on the first term of the loan. A lifetime maximum borrowing for the Young Producer Incentive is $1,000,000 per individual. The Young Producer Incentive cannot be applied to housing, purchasing assets from a spouse or paying out an existing AFSC loan.

Applying for a loan

This program is eligible to individuals who are Canadian citizens or landed immigrants, and companies incorporated in Canada and registered to operate a business in Alberta.