Alberta has announced changes to the Agriculture Financial Services Corporation’s (AFSC) Next Generation Loan program.
The province says 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 wants to reverse that trend with changes to AFSC’s Next Gen Program .
Agriculture and Irrigation Minister RJ Sigurdson says 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. "
The following changes to the Next Gen program will come into effect September 1st.
- 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.
Darryl Kay, CEO for Agriculture Financial Services Corporation says the changes to the Next Generation Loan program are key to the long-term sustainability and growth of Alberta's agriculture industry.