Farm Credit Canada's Transition Loan program has been enhanced.
Federal Agriculture Minister Heath MacDonald says transferring the family farm or business can be stressful; the new changes will help address the financial barriers many people face.
The loan's new terms are designed to make it easier for both buyers and sellers by allowing disbursements to the seller over a 10 year period.
The loan is available for farms, agribusinesses, or food businesses going through changes in ownership, be it within or outside the family.
According to the FCC website... As a seller, you can support future industry leaders while protecting your legacy. You can agree on a payment schedule of two to 10 years with the buyer. FCC guarantees those funds and disburses your money accordingly at agreed upon dates. This amount is added to the buyer’s loan, and they only pay interest on that amount.
Full details on the new changes to the Transition Loan Program can be found here.