News

New Young Farmer Loan to Help Next Generation of Producers

April 12th, 2012

Saskatoon, Saskatchewan, April 12, 2012 – Young and
beginning farmers will find it easier to start and grow their farm businesses
with the help of a new $500 million loan program. Agriculture Minister Gerry
Ritz and Farm Credit Canada (FCC) President and CEO Greg Stewart introduced
the Young Farmer Loan today.

“Agriculture is a key driver of jobs and economic growth here in Canada, and
young farmers are vital to the long-term prosperity of the agriculture
industry,” said Minister Ritz. “Encouraging young farmers to invest wisely and
contribute to a prosperous, modern sector is not only good for agriculture but
good for Canada.”

This new loan offers qualified producers who are under 40 years of age loans
of up to $500,000 to purchase or improve farmland and buildings. Producers
between the ages of 18 and 39 make up approximately 16 per cent of Canadian
producers, according to the 2006 Census. The FCC Young Farmer Loan includes
features and options that address this demographic, and support their long-term
success. These include:

• variable rates at prime plus 0.5% and special fixed rates
• no loan
processing fees

“We listen to our customers, and we develop products and
services to meet their needs,” said Mr. Stewart. “By allowing young producers to
borrow with no fees at affordable rates, the Young Farmer Loan will help them
build their businesses and develop a solid credit history. As a responsible
lender, we’re excited to see how they use this product to grow their business
and the industry.”

The Young Farmer Loan enhances FCC’s suite of existing products and services
that support young producers, such as the FCC Transition Loan, FCC Business Planning Award, FCC Learning events and publications, FCC Go Ag! events,
and FCC Management software for both accounting and field
management.

For more information on the FCC Young Farmer Loan, visit www.fcc.ca/youngfarmerloan.

As Canada’s leading agriculture lender, FCC is advancing the business of
agriculture. With a healthy portfolio of more than $22 billion and 19
consecutive years of portfolio growth, FCC is strong and stable – committed to
serving the industry through all cycles. FCC provides financing, insurance,
software, learning programs and other business services to producers,
agribusinesses and agri-food operations. FCC employees are passionate about
agriculture and committed to the success of customers and the industry. For more
information, visit www.fcc.ca.