The Government of Alberta is making changes to the Next Generation Loan program with the aim of reversing a decline in young and middle-aged agriculture producers.
According to the provincial government, the number of farmers over 55 has increased.
“By updating and expanding the Next Generation Loan program, young and young-at-heart Albertans will have fewer barriers when entering Alberta’s agriculture industry. Increasing new and returning entrants to agriculture will ensure the sector continues to be a healthy and important contributor to Alberta’s economy,” said RJ Sigurdson, minister of agriculture and irrigation.
In a press release, officials say, “Alberta’s government understands that producers need stable sources of capital to manage and grow their operations and help them weather economic challenges.”
They say expanding eligibility and updating the terms for the loan program, it will make it easier for producers to enter or re-enter the agriculture industry.
With this update to the program, producers of any age entering or returning to farming will be eligible for a one per cent interest rate incentive, while before it was only available to those under 40.
Applicants now also only require 20 per cent ownership in a farming operation while before they needed to own 25 per cent.
Other changes include:
- Producers may receive an interest rate incentive on their total lifetime loan principal up to $1.5 million, an increase from the previous $1 million.
- Eligible borrowers can make “interest-only” payments on their loans for up to five years, up from the current two years.
These changes take effect Sept. 1, interested producers can talk to their local Agriculture Financial Services Corporation.
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