FCC doubles commitment to young farmers with $50M
Regina, Saskatchewan, October 15, 2007 – Canadian young farmers can access another $50 million for expanding their operations or purchasing a farm, thanks to Farm Credit Canada's Accelerator Loan. In 2006, FCC also committed $50 million to young farmers via this loan.
“The Accelerator Loan is part of over $500 million FCC approved to young farmers last year through all of our custom and standard loan products,” says Lyndon Carlson, FCC Vice-President, Marketing and Product Development.
“There is a major need for this funding in the industry,” says Carlson. “This loan addresses the issues of down payment, cash flow, equity building and asset transfer by offering as low as zero per cent down and interest-only payments on a portion of the loan with a competitive rate.”
The Accelerator Loan targets farmers under 40, and since launching it in 2006, producers have received over $40 million through this loan.
“We know farm transfers are not easy and we're listening to our customers to understand their needs,” Carlson says.
“The Accelerator Loan addresses the needs of sellers who want the security of payments over time, guaranteed by FCC,” Carlson says. “Operators greater than 55 years of age hold $86 billion in farm assets that will soon be moving to the next generation. The Accelerator Loan makes this process easier for both the buyer and the seller.”
With as low as zero per cent down and flexible payment options, young farmers will have the cash flow required to build their operations and equity. They require a seller who does not require full payment up front.
Included in the loan are two other components - training and software.
Young farmers who use the Accelerator Loan receive free access to an FCC AgriSuccess management training workshop on financial management, human resource management, vision or goal setting, or managing price risk. Farmers who sell their property using the Accelerator Loan also receive free access to a workshop on succession or estate planning.
Finally, buyers who use the Accelerator Loan receive AgExpert Analyst, Farm Credit Canada's industry leading farm financial management software, at no charge.
“Through the Accelerator Loan, our Business Planning Awards, 4-H partnership, AgriSuccess workshops, First Step Loan and AgExpert software, we're helping young producers get off to a good start,” Carlson says.
FCC is Canada's largest provider of business and financial services to farms and agribusiness. Operating out of 100 offices located primarily in rural Canada, FCC employees are passionate about the business of agriculture. A healthy portfolio of more than $13 billion and 14 consecutive years of portfolio growth are a reflection of our customers' success.
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For more information, please contact:
Chris Clemett
Corporate Communication
Farm Credit Canada
306-780-7351
Chris.Clemett@fcc-fac.ca
Terina Abrahamson
Corporate Communication (Bilingual)
Farm Credit Canada
306-780-8605
Terina.Abrahamson@fac-fcc.ca
