Farm Transfer Transition Loans
Canada
Farm transfer loan
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateNovember 14, 2019
grant_single|financingType
Loans and Capital investments
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Farm Credit Canada (FCC)
- Government of Canada
grant_single|status
grant_card_status|open
grant_single_labels|preview
Access loans to help the transition of a farm from seller to buyer, including intergenerational farm transfers, or if you are a young farmer looking to build your own farm.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$70,000
Transitioning sheep farm ownership to a young couple
$50,000
Improving equity and upgrading irrigation systems in a medium-sized fruit farm
$200,000
Acquiring land and farm assets for a young farmer's new organic vegetable farm
$35,000
Managing cash flow and buying necessary equipment for a start-up poultry farm
$150,000
Expanding a family-run dairy farm through intergenerational transition and new infrastructure
$60,000
Building and equipping a new greenhouse for a small-scale urban farm
grant_single_labels|admissibility
Eligibility for the Transition Loan involves certain criteria related to the applicant's situation and financial needs.
- The applicant must be involved in farm transfers, either transferring farm assets or acquiring them as a young farmer.
- The applicant should be in need of financing to manage cash flow or to build equity quickly.
- The buyer must qualify for FCC to finance the down payment for a maximum of seven years.
grant_eligibility_criteria|who_can_apply
The Transition Loan is aimed at individuals involved in farm transfers, particularly aiding young farmers and those looking to transition assets in agriculture. It provides financial solutions to manage cash flow or quickly build equity during the transfer process.
grant_eligibility_criteria|eligible_expenses
This financial initiative is tailored to support farm asset transfers and aid young farmers in establishing their operations. It focuses on flexible payment methods and risk mitigation for both buyers and sellers in the farming industry.
- Facilitating the transfer of farm assets to young or new farmers through structured payment plans.
- Providing financial solutions like interest-only or principal-plus-interest payments to improve cash flow management.
- Offering opportunities to build equity in farming operations through accessible financing options.
- Ensuring complete payment to sellers over an agreed period, backed by guarantees for financial security.
- Supporting tax advantage opportunities for sellers receiving payments over time.
grant_single_labels|register
- 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_single_labels|otherInfo
Here are additional relevant details for this loan:
- Access to AgExpert software: AgExpert Accounting Premium and AgExpert Field Premium are offered for free for one year, valued at $499.
- Loan Insurance is available, ensuring protection of your most important asset.
- Contact methods are diverse, including phone, email, local office visits, and various social media platforms.
- There's additional educational content available through the FCC Knowledge Newsletter and Loan Essentials guidance.
Apply to this program
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.
