Starting out in agriculture can feel overwhelming for new and aspiring producers.
The need for substantial capital to purchase land, equipment, and inputs can pose a significant hurdle for a would-be farmer or rancher. Unlike established farmers, those who are new, young, or returning to farming often lack the financial history and collateral needed to get started.
However, Agriculture Financial Service (AFSC) has loan options available to help these starting farmers and ranchers. One such option is the AFSC Next Generation Loan. This specialized loan can help new and returning producers establish their own farming operations or take over existing ones through succession.
“(The Next Generation Loan) is really about helping the next generation of producers get into farming,” explained Joy Cavin, one of AFSC’s lending relationship managers. “We know how big the financial hurdles can be, and this program is designed to help make it happen.”
With lower rates, a special one per cent Next Generation rate incentive and the opportunity to finance up to 90 per cent of the purchase price for land, buildings or quota, the Next Generation Loan can make a huge difference for producers who are starting out. And recent changes mean farmers over 40 who meet certain criteria can access the program’s features and the Next Generation Incentive.
“That’s a big deal because, let’s be honest, next generation doesn’t always mean someone in their 20s or 30s,” said Cavin. “With the average age of farmers getting higher, a lot of people don’t have the chance to take over until later in life. This change reflects the reality of farming today.
Helping aspiring farmers achieve their dreams with personalized lending support
When Colin and Kara Boender of Boender Farms Ltd got their first farm loan around 10 years ago, they found that the people who worked at AFSC were ready to work with them as young farmers.
“When we got our first farm loan, we went to two banks and the other bank wanted all kinds of co-signers and all kinds of this and all kinds of that,” commented Colin Boender. “The people at AFSC were willing and able to work with us as young farmers. They’ve been really good to work with and really want to see us succeed.”
Cavin explained that some of the features of the Next Generation Loan just make it easier for beginning farmers to qualify for a loan.
“One of the best parts of this program is that we can use future cash flow projections instead of just relying on historical income,” said Caven. “That’s a game-changer for new farmers.”
AFSC specializes in agriculture lending, which means its lending relationship managers deal with producers every day. They take time to get to know their clients and understand their clients’ goals and aspirations. AFSC lenders also have knowledge of and an appreciation for the agriculture industry.
That knowledge and understanding is key for Allana Minchau of 7A7 Ranch in southern Alberta.
“I think the biggest issue we’ve had with other lending partners is that they treat us like we are just another person,” explained Minchau. “Whereas in ag, you can’t really be seen that way.
“It’s really difficult to get mortgages or to get loans because (banks) think, even though we see ourselves as being consistent earners, they still see you as too high of risk. Whereas to (a lender) like AFSC, everybody in ag is self-employed. It’s really nice to have that understanding and knowledge.”
Working with new and aspiring farmers and ranchers as they make their farm business a reality is deeply satisfying for Cavin. She said it’s about setting up the next generation for success and, in cases where a farm is moving between generations, keeping family farms intact.
Cavin stressed the importance of these new farmers and ranchers for the future of agriculture in Alberta, adding that AFSC’s lending support is helping to preserve these operations and build strong rural communities.
“These clients bring so much passion and energy. Most of them have been working hard—both off-farm and on their family operations—and now they’re finally getting the chance to branch out on their own.
“Helping someone achieve their lifelong dream of becoming a producer—that’s the best part of the job.”
To learn more about AFSC’s Next Generation Loan or other loan options, please contact a lending relationship manager at your preferred AFSC branch office, call the Client Care Centre at 1.877.899.2372 or email info@afsc.ca
