Young farmer loans: some insight from the FCC

Day i had a conversation with my sister in-law the other. She actually is in the act when trying to get a farm. The interesting component is this woman is going right on through Farm Credit Canada(FCC) and it is hoping to get the Young Farmer Loan.

Usually, if you’re buying a home you need to put a down payment that is nothing new. More often than not the advance payment is between 5-15%, that isn’t too detrimental to a property. The problem is a bit more interesting for new farmers.

Let’s state you need to obtain a relatively cheap farm that is $500,000. Apparently, if you’d like to obtain a farm through FCC they require a 25per cent advance payment. Just a little of math right here. 500,000*0.25= $125,000.


My sister-in-law is in a fairly good situation, but she will not in the slightest have actually that sort of money around. After all, “who has that style of money”?

It really is a serious chunk of modification. You look at it if you are a young farmer, saving up that much money isn’t easy no matter how.

Whenever she told the person that she didn’t have that sort of advance payment, the individual shared with her can’t she get it from elsewhere? Pose a question to your household?

Maybe it had been the real means she told the story? I’m not certain, nevertheless they didn’t appear excellent. Additionally, not totally all families can you financially like this.


Additional options than young farmer loans? It is possible to go right to the bank and find out whatever they shall provide you with. They went along to the financial institution to see just what the problem ended up being there too. The thing that is same that they had to place a 25% deposit down from the spot. But, i really believe a bank is in a position to make use of you a little more in this region.

Young farmer loans

While they are prepared to offer you $500,000, they desire you to definitely put a 25% deposit down. On a farm this is certainly lot of income. As being a brand new farmer, we’m sure we don’t have actually that type of money around. Needless to say you will be saving for something similar to that, however it isn’t easy.

Young farmer loans through FCC is not necessarily the most suitable choice, however it is a selection for brand new farmers. It is advisable to possess some options than none at all.

Final ideas

New farmers and young farmers have road that is tough of these. It really isn’t simply the economic side, there are numerous other obstacles that you must face. If agriculture could be the right choice you will do everything in your power to make it so for you.

Maybe you have been through this particular situation? Please share it.


Many Thanks a great deal for the feedback. I’d like to give some clarification that can help.

You may be correct in saying that down re payments for domestic homes often vary between 5 and 15percent. However, banking institutions – i.e. Banking institutions, Credit Unions and FCC – have actually greater down payment and/or security demands for commercial operations (and farms are believed commercial).

For commercial operations loan providers examine a true wide range of facets and FCC is not any exception. Being a lender that is responsible FCC makes every work to make sure every one of its loans meet with the 5 C’s of Credit: 1. Character: training, knowledge, experience, monetary abilities, credit rating, integrity. 2. Capacity: past and projected performance that is financial outside income, working money, quality of this current assets. 3. Commitment: the degree of capital the debtor is spending and contains use of. 4. Collateral: protection available and offered, valuation. 5. Conditions: legislation, market, economy, environment.