Young farmer loans: some understanding in the FCC

Young farmer loans: some understanding in the FCC

I experienced a discussion with my sister in-law the other time. She’s along the way of trying to get a farm. The interesting component is that she actually is going right on through Farm Credit Canada(FCC) and it is looking to get the Young Farmer Loan.

Ordinarily, if you are purchasing a household you must place a down payment that is nothing new. More often than not the down payment is between 5-15%, that isn’t too detrimental to a home. The problem is a bit more interesting for new farmers.

Let’s state you wish to obtain a fairly 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 here. 500,000*0.25= $125,000.


My sister-in-law is in a fairly situation that is good but she will not in the slightest have actually that sort of money around. After all, “who has that kind of money”?

It really is a severe amount of change. You look at it if you are a young farmer, saving up that much money isn’t easy no matter how.

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?

Possibly it absolutely was the means she told the storyline? I’m perhaps not sure, nonetheless they didn’t appear good. Also, only a few families can you financially like this.


Additional options than young farmer loans? It is possible to go right to the bank and find out whatever they will provide you with. They went to the financial institution to see just what the problem ended up being there also. The ditto occurred that they had to put a 25% deposit down from the spot. 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 willing to offer you $500,000, they need you to definitely place a 25% deposit down. On a farm this is certainly great deal of cash. Being a brand new farmer, i am aware I don’t have actually that sorts of money around. Needless to say you would certainly be saving for something such as that, however it isn’t easy.

Young farmer loans through FCC is not fundamentally the most suitable choice, however it is a selection for brand new farmers. It is far better to own some choices than none after all.

Last ideas

New farmers and young farmers have road that is tough of those. It really isn’t simply the side that is financial of, 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 been through this sort of situation? Please share it.


Many Thanks a great deal for the feedback. I’d like to offer some clarification that can help.

You might be proper in saying that down re payments for domestic homes frequently range 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 believed commercial).

For commercial operations loan providers glance at a true wide range of facets and FCC is not any exclusion. Being a lender that is responsible FCC makes every effort to make certain most of its loans meet with the 5 C’s of Credit: 1. Character: training, knowledge, experience, monetary abilities, credit score, integrity. 2. Capacity: previous and projected economic performance, outside income, working money, quality associated with the present assets. 3. Commitment: the known degree of money the debtor is spending and it has usage of. 4. Collateral: safety offered and available, valuation. 5. Conditions: legislation, market, economy, environment.