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 hopes to reverse that trend and it’s starting with changes to Agriculture Financial Services Corporation (AFSC)’s Next Generation Loan Program (Next Gen).
Alberta is expanding eligibility and updating Next Gen’s terms to 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, the province says.
“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,” says 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.
As part of this initiative, 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, and 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.
