Supporting Future Farmers with AFSC's Next Generation Loan Program

Alberta’s government is supporting future farmers and ranchers through changes to Agriculture Financial Services Corporation’s (AFSC) Next Generation Loan Program. 

Over the past 20 years, the number of young producers in agriculture has seen steep declines, while the number of farmers over the age of 55 has increased. Alberta's government is aiming to help reverse that trend with changes to AFSC's Next Generation Loan Program.

Producers need stable sources of capital to manage and grow their operations and help weather economic challenges. By expanding the eligibility and updating the terms of the Next Generation Loan Program, the government hopes to make it easier for young producers to enter and re-enter the agricultural industry, give greater opportunities to new and growing operations, make succession more appealing, and encourage more young people to get into farming.

Next Generation Loans already offer preferential pricing, with the lowest interest rates compared to other programs in the market. The updates will expand eligibility for interest rate incentives, lower ownership percentage requirements, and increase the time available for interest-only loan payments.

As of September 1, 2024:

• Producers of any age who are entering or returning to farming are eligible for a one per cent interest rate incentive, while before it was only available to those under age 40.
• 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.
• Applicants now require 20 per cent ownership in a farming operation, down from 25 per cent.
• Eligible borrowers can make interest-only payments on their loans for up to five years, up from the current two years.

For more information or to apply online, visit afsc.ca/lending/next-generation-loan