Young farmer loans: some insight regarding the FCC

Young farmer loans: some insight regarding the FCC

Day i had a conversation with my sister in-law the other. She’s along the way of attempting to get a farm. The interesting part is this woman is going right through Farm Credit Canada(FCC) and it is looking to get the Young Farmer Loan.

Generally, if you’re purchasing a property you need to put a down payment that is nothing brand brand new. Quite often the advance payment is between 5-15%, that isn’t too harmful to a property. For brand new farmers the issue is a little more interesting.

Let’s state you need to buy a reasonably inexpensive farm that is $500,000. Apparently, they ask for a 25% down payment if you want to buy a farm through FCC. Just a little of mathematics 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 type of money around. After all, “who has that sort 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.

When she told anyone that she didn’t have that sorts of advance payment, the individual shared with her can’t she get it from some other place? Pose a question to your family members?

Possibly it absolutely was the real method she told the storyline? I’m not certain, however they didn’t appear excellent. Additionally, not totally all families can financially support you like this.


Other choices than young farmer loans? You are able to go directly to the bank and find out whatever they will present. They decided to go to the lender to see just what the specific situation ended up being here also. 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 much more in this region.

Young farmer loans

You $500,000, they want you to put a 25% deposit down while they are willing to give. On a farm this is certainly a complete great deal of income. As a farmer that is new we’m sure we don’t have actually that types of money around. Of course you will be saving for something such as that, however it isn’t easy.

Young farmer loans through FCC is not necessarily the choice that is best, however it is a selection for brand new farmers. It is better to own some choices than none at all.

Final thoughts

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

Perhaps you have experienced this sort of situation? Please share it.


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

You will be proper in saying that down re re payments for domestic homes often vary between 5 and 15percent. Nevertheless, financial institutions – in other words. 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 loan providers glance at quantity of facets and FCC is not any exclusion. As being a accountable lender, FCC makes every effort to make sure most of its loans meet with the 5 C’s of Credit: 1. Character: training, knowledge, experience, monetary abilities, credit score, integrity. 2. my payday loan Capacity: previous and projected monetary performance, outside income, working money, quality for the present assets. 3. Commitment: the amount of capital the debtor is investing and has usage of. 4. Collateral: protection available and offered, valuation. 5. Conditions: legislation, market, economy, environment.