Young farmer loans: some insight from the FCC


Young farmer loans: some insight from the FCC

Day i had a conversation with my sister in-law the other. This woman is along the way when trying to get a farm. The interesting component is this woman is dealing with Farm Credit Canada(FCC) and it is hoping to get the Young Farmer Loan.

Ordinarily, when you’re purchasing a home you need to place a down payment that is nothing brand new. More often than not the advance payment is between 5-15%, that isn’t too harmful to a home. The problem is a bit more interesting for new farmers.

Let’s state you need to buy a fairly low priced farm that is $500,000. Apparently, if you wish 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 with 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 chunk that is serious of. You look at it if you are a young farmer, saving up that much money isn’t easy no matter how.

She didn’t have that kind of down payment, the person told her can’t she get it from somewhere else? Ask your family when she told the person that?

Possibly it had been the method she told the tale? I’m not certain, however they didn’t appear excellent. Also, only a few families can you financially like this.


Other available choices than young farmer loans? It is possible to go right to the bank and determine whatever they shall supply. They decided to go to the financial institution to see just what the problem ended up being there also. The ditto occurred that they had to place a 25% deposit down from the destination. Nevertheless, I believe a bank is in a position to make use of you much more in this region.

Young farmer loans

As they are able to provide you with $500,000, they need you to definitely place a 25% deposit down cash advance loans near me. For a farm this is certainly a complete lot of cash. Being a brand new farmer, we’m sure I don’t have actually that variety of money around. Needless to say you’d be saving for something such as that, however it isn’t easy.

Young farmer loans through FCC is not fundamentally the choice that is best, however it is an option for new farmers. It is advisable to possess some choices than none after all.

Last ideas

New farmers and young farmers have tough road ahead of those. It really isn’t simply the side that is financial of, there are numerous other barriers you need to face. If agriculture may be the right choice for you personally, you will definitely try everything in your capacity to allow it to be so.

Maybe you have experienced this kind of situation? Please share it.


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

You are correct in saying that down re payments for residential homes often vary between 5 and 15per cent. But, financial institutions – i.e. Banking institutions, Credit Unions and FCC – have actually greater deposit and/or security demands for commercial operations (and farms are thought commercial).

For commercial operations lenders view quantity of facets and FCC is not any exclusion. Being a lender that is responsible FCC makes every work to ensure every one of its loans meet with the 5 C’s of Credit: 1. Character: training, knowledge, experience, economic abilities, credit rating, integrity. 2. Capacity: past and projected economic performance, outside income, working money, quality for the current assets. 3. Commitment: the amount of money the debtor is spending and contains usage of. 4. Collateral: safety available and offered, valuation. 5. Conditions: legislation, market, economy, environment.

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