Young farmer loans: some understanding regarding the FCC

I’d a discussion with my sister in-law the other time. She actually is along the way when trying to purchase a farm. The interesting component is that this woman is going right through Farm Credit Canada(FCC) and it is trying to get the Young Farmer Loan.

Ordinarily, when you’re buying a residence you need to place a down payment that is nothing brand new. In most cases the advance payment is between 5-15%, that isn’t too detrimental to a residence. The problem is a bit more interesting for new farmers.

Let’s state you wish to buy a fairly low priced 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 mathematics right right here. 500,000*0.25= $125,000.


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

It’s a serious amount of modification. 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?

Perhaps it absolutely was the real means she told the tale? I’m not certain, nevertheless they didn’t seem excellent. Also, not all the families can support you financially that way.


Additional options than young farmer loans? It is possible to go right to the bank and view whatever they will provide you with. They went to the financial institution to see just what the problem had been here also. The thing that is same that they had to place a 25% deposit down in the place. But, in my opinion a bank is in a position to make use of you much more in this region.

Young farmer loans

As they are able to provide you with $500,000, they need you to definitely place a 25% deposit down. For a farm that is a complete great deal of cash. As a new farmer, we’m sure we don’t have that sorts of money around. Of course you’d be saving for something like 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 far better to possess some choices than none after all.

Final ideas

New farmers and young farmers have road that is tough of those. It really isn’t simply the monetary side, there are numerous other barriers you need to face. If agriculture is the right choice for your needs, you are going to try everything in your capacity to ensure it is therefore.

Perhaps you have been through this kind of situation? Please share it.


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

You might be proper in saying that down payments for domestic houses frequently vary between 5 and 15percent. Nevertheless, banking institutions – in other words. Banking institutions, Credit Unions and FCC – have actually greater down payment and/or security requirements for commercial operations (and farms are thought commercial).

For commercial operations lenders glance at quantity of facets and FCC is not any exception. As a lender that is responsible FCC makes every work to ensure each of its loans meet with the 5 C’s of Credit: 1. Character: training, knowledge, experience, economic abilities, credit rating, integrity. 2. Capacity: previous and projected performance that is financial outside income, working money, quality regarding the present assets. 3. Commitment: the standard of money the borrower is spending and it has access to. 4. Collateral: protection offered and available, valuation. 5. Conditions: legislation, market, economy, environment.