Young farmer loans: some understanding in the FCC

Young farmer loans: some understanding in the FCC

I’d a discussion with my sister in-law the other day. She actually is along the way of attempting to get a farm. The interesting part is the fact that this woman is going right on through Farm Credit Canada(FCC) and it is hoping to get the Young Farmer Loan.

Usually, if you are buying a residence you need to place a down payment that is nothing new. Quite often the payment that is down between 5-15%, that isn’t too detrimental to a property. For brand new farmers the issue is a little more interesting.

Let’s state you wish to purchase a fairly inexpensive farm that is $500,000. Evidently, they ask for a 25% down payment if you want to buy a farm through FCC. Just a little of math here. 500,000*0 $125,000.


My sister-in-law is with in a fairly situation that is good but she doesn’t at all have actually that sorts of money around. After all, “who has that form of money”?

It really is a chunk that is serious of. If you’re a new farmer, saving up that much cash isn’t effortless regardless of how you appear at it.

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?

Maybe it had been the means she told the tale? I will be perhaps not yes, nonetheless they didn’t appear very nice. Additionally, not all the families can you financially like that.


Other choices than young farmer loans? You’ll go directly to the bank to see whatever they will provide you with. They went along to the financial institution to see just what the specific situation ended up being there as well. The same task occurred that they had to place a 25% deposit down from the destination. But, I think a bank is in a position to make use of you much more in this region.

Young farmer loans

As they are prepared to offer you $500,000, they desire you to definitely put a 25% deposit down. On a farm that is great deal of income. As a brand new farmer, we’m sure we don’t have that form 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 isn’t fundamentally the most suitable choice, however it is a selection for new farmers. It is advisable to possess some choices than none at all.

Last ideas

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

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


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

You’re proper in saying that down re re payments for domestic homes frequently vary between 5 and 15per cent. Nevertheless, financial institutions – i.e. Banking institutions, Credit Unions and FCC – have greater deposit and/or security demands for commercial operations (and farms are considered commercial).

For commercial operations loan providers examine range facets and FCC isn’t any exclusion. As a lender that is responsible FCC makes every work to make sure each of its loans meet up with the 5 C’s of Credit: 1. Character: training, knowledge, experience, monetary abilities, credit rating, integrity. 2. Capacity: past and projected economic performance, outside income, working money, quality for the current assets. 3. Commitment: the degree of capital the borrower is spending and it has use of. 4. Collateral: protection available and offered, valuation. 5. Conditions: legislation, market, economy, environment.

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