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 aiming to help reverse that trend with changes to Agriculture Financial Services Corporation (AFSC)’s Next Generation Loan Program (Next Gen).
Alberta’s government understands that producers need stable sources of capital to manage and grow their operations and help them weather economic challenges. Expanding eligibility and updating Next Gen’s 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
With updates to the Next Generation Loan Program:
- 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 will take effect September 1. Interested producers can talk to their AFSC branch to find out more.
"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. 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."
Click here to see more...