Starting out in agriculture can feel overwhelming for new and aspiring producers.
The need for substantial capital to purchase land, equipment, and inputs can pose a significant hurdle for a would-be farmer or rancher. Unlike established farmers, those who are new, young, or returning to farming often lack the financial history and collateral needed to get started.
However, Agriculture Financial Service (AFSC) has loan options available to help these starting farmers and ranchers. One such option is the AFSC Next Generation Loan. This specialized loan can help new and returning producers establish their own farming operations or take over existing ones through succession.
“(The Next Generation Loan) is really about helping the next generation of producers get into farming,” explained Joy Cavin, one of AFSC’s lending relationship managers. “We know how big the financial hurdles can be, and this program is designed to help make it happen.”
With lower rates, a special one per cent Next Generation rate incentive and the opportunity to finance up to 90 per cent of the purchase price for land, buildings or quota, the Next Generation Loan can make a huge difference for producers who are starting out. And recent changes mean farmers over 40 who meet certain criteria can access the program’s features and the Next Generation Incentive.
“That’s a big deal because, let’s be honest, next generation doesn’t always mean someone in their 20s or 30s,” said Cavin. “With the average age of farmers getting higher, a lot of people don’t have the chance to take over until later in life. This change reflects the reality of farming today.”
Click here to see more...