Boosting caps on farm loans

By Sharon McLeay Times Contributor

Agriculture Financial Services Corporation (AFSC) is increasing the amount of money it can lend farmers, agriculture producers, and agri-food entrepreneurs and businesses.
On Oct. 10, the Alberta government added another $10 million to the $5 million loan limits that can be granted by AFSC. The corporation is a provincial crown corporation that makes money available for agricultural uses.
“They just bumped the limit up to $15 million, before we couldn’t go over the set limit,” said Reinhardt Webber, Strathmore AFSC manager.
The bump may help farmers and agribusiness owners cash in on new pulse-related products and business ideas touted to be the next boon to overseas export markets. The province hopes lifting the cap will encourage growth and diversity in the agricultural industry.
“The role of AFSC in long-lasting economic recovery is crucial to our plan. Increasing the lending limit, or assisting agriculture producers, agribusinesses and food processors to expand their operations, is another important step towards economic growth, diversification and job creation,” said Oneil Carlier, Alberta minister of agriculture and forestry, in a news release.
While the province indicates that it will help young farmers and new businesses to get capital, Webber stated $15 million is a lot for young farmers to commit to in a first-time loan, as the money is not a grant and has to be repaid.
An alternative for younger farmers is the Next Generation Loan Program, which is offered to applicants under the age of 40, or to those with less than three years farming experience, giving them a one per cent cut on their interest rate for loans of up to $1 million.
There are also longer-term loans offered by AFSC for a variety of farming and ranching needs. Visit afsc.ca for more information.