Agriculture is essential to Alberta’s history, economy and future prosperity. 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 supporting future farmers and ranchers through changes to Agriculture Financial Services Corporation’s Next Generation Loan program. Expanding eligibility and updating AFSC’s Next Generation loan terms will make it easier for producers to enter and re-enter the agriculture industry, give greater opportunities to new and growing operations, make succession more appealing, and encourage new and young people to get into farming.
“By updating and expanding the Next Generation Loan program, young and young-at-heart Albertans will have fewer barriers when entering Alberta’s agriculture industry. Increasing new and returning entrants to agriculture will ensure the sector continues to be a healthy and important contributor to Alberta’s economy.”
RJ Sigurdson, Minister of Agriculture and Irrigation
Next Gen already offers preferential pricing with the lowest interest rates compared to all other loan programs in the ag lending market. The updates will expand eligibility for interest rate incentives, lower ownership percentage requirements and increase the time available for “interest-only” loan payments.
“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.”
Darryl Kay, CEO, Agriculture Financial Services Corporation
Changes include:
- 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.
These changes take effect September 1. Interested producers can use the live chat function on our website or AFSC Connect, call the Client Care Centre at 1.877.899.2372 or contact their preferred AFSC branch office for more information. Producers with active loan requests with AFSC who would like to see if they qualify for the enhanced terms should contact their lending relationship manager.
To read the full news release: Sowing seeds of success for future farmers | alberta.ca
