Farm Transfer Transition Loans
At a glance
- No Condition
- Open Date : November 14, 2019
- Agriculture, forestry, fishing and hunting
- Farm Credit Canada
- Government of Canada
Overview
Eligibility criteria
Here are the eligibility criteria for the Transition Loan:
- Farmers transferring farm assets
- Youth farmers looking to build their farm
Eligible expenses
There are eligible expenses for this grant:
- Buying farm assets or land
- Building or expanding a farm operation
- Transitioning farm ownership
- Managing cash flow
- Improving equity
How to apply
- Step 1: Contact FCC
- Content: Call FCC at 1-888-332-3301 or email an FCC representative
- Implications: Initiate communication with FCC to express interest in the Transition Loan
- Step 2: Discuss Loan Options
- Content: Explore the Transition Loan features and benefits
- Implications: Understand the loan terms and conditions to make an informed decision
- Step 3: Complete Loan Application
- Content: Gather required financial information and complete the loan application
- Implications: Provide necessary documents and information for FCC to assess the loan request
- Step 4: Await FCC Decision
- Content: Wait for FCC to review the application and provide a decision
- Implications: Be patient during the loan approval process
- Step 5: Finalize Loan Agreement
- Content: Review and sign the loan agreement documents
- Implications: Formalize the loan agreement with FCC to access the Transition Loan
Grant Summary: Transition Loan for Farm Transfers
Transition Loan for Farm Transfers
The Transition Loan is a financial tool designed to facilitate the transfer of farm assets by providing payments over time, up to five years, with interest charged only on the disbursed amount. It enables young farmers to build their farms by offering options for managing cash flow and building equity quickly.
Buyers benefit from potential capital-free down payments, while sellers have the security of guaranteed full payment backed by FCC. The loan offers flexibility in payment structures, including interest-only or principal-reducing payments, making it easier to facilitate the transfer of farm operations between generations. Additional features like pre-approved lines of credit and deferred payments further enhance the viability of farm transfers with this loan.