Young farmer loans: some insight regarding the FCC

I’d a conversation with my sister in-law the other time. She actually is in the act of attempting to buy a farm. The interesting part is the fact that she’s dealing with Farm Credit Canada(FCC) and it is looking to get the Young Farmer Loan.

Typically, when you’re buying a property you must put a down payment that is nothing brand brand new. More often than not the payment that is down between 5-15%, that isn’t too harmful to a home. For brand new farmers the issue is a little more interesting.

Let’s say you wish to purchase a fairly low priced farm that is $500,000. Evidently, if you’d like to obtain a farm through FCC they request a 25per cent deposit. Just a little of math here. 500,000*0.25= $125,000.


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

It is a chunk that is serious of. 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?

Maybe it absolutely was the real means she told the storyline? I’m not yes, however they didn’t seem excellent. Additionally, only a few families can you financially that way.


Additional options than young farmer loans? You are able to go directly to the bank to discover whatever they shall present. They decided to go to the financial institution to see what the problem ended up being here too. The thing that is same that they had to place a 25% deposit down in the place. But, i really believe a bank is in a position to make use of you a little more in this region.

Young farmer loans

You $500,000, they want you to put a 25% deposit down while they are willing to give. On a farm this is certainly a complete great deal of cash. As a farmer that is new I know we don’t have that type 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 isn’t always the best option, however it is a selection for brand new farmers. It is best to possess some choices than none at all.

Final ideas

New farmers and young farmers have tough road ahead of those. It really isn’t simply the side that is financial of, there are numerous other obstacles you need to face. If agriculture could be the right choice for you personally, you may try everything in your capacity to allow it to be therefore.

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


Many Many Thanks so much for the responses. I’d like to deliver some clarification that might help.

You will be correct in saying that down re payments for residential homes usually vary between 5 and 15percent. Nonetheless, banking institutions – i.e. Banking institutions, Credit Unions and FCC – have actually greater deposit and/or security demands for commercial operations (and farms are thought commercial).

For commercial operations loan providers glance at a true range facets and FCC is not any exclusion. As a lender that is responsible FCC makes every work to make certain each of its loans meet with the 5 C’s of Credit: 1. Character: training, knowledge, experience, monetary abilities, credit history, integrity. 2. Capacity: previous and projected performance that is financial outside income, working money, quality associated with the present assets. 3. Commitment: the amount of money the debtor is spending and contains use of. 4. Collateral: protection offered and available, valuation. 5. Conditions: legislation, market, economy, environment.