Loan Products
The following summary of loan products for each institution is a summary of their agriculture specific loan products. This information was found on their company website. For more details on an institution’s loan products, see the accompanying link under each summary table.In addition to the following financial institutions’ loan products; there are also other programs and debt products specific to cattle producers.
AFSC Products:
Alberta Farm Loan Program
| Description | Term | Interest Rate |
|---|---|---|
| Primary agriculture producers can use the loan to purchase equipment, land, machinery, breeding livestock, production quota, and shares in a farming company. Permanent improvements to land, complete repairs, and renovate or construct buildings, including livestock facilities, barns, and housing. Loans can also be used to assist with financial restructuring and restoring working capital. | Maximum 20 years. | Variable and fixed rates available. |
| Payment Frequency | Available Loan Amount | Notes |
|---|---|---|
| customizable | Up to $2 million | - Loans can be paid out at any time without penalty. - Beginning Farmer Incentive (BFI): Interest rate reduction of 1.5% for the first 5 years. - Qualifying individuals are those with a net worth under $500,000. |
Alberta Disaster Assistance Loan Program
| Description | Term | Interest Rate |
|---|---|---|
| Helps Alberta producers restore the working capital needed to maintain their farming operations after an agricultural disaster. Short-term emergency response that covers all segments of the agriculture industry. | customizable | Fixed at 5% for up to 10 years. |
| Payment Frequency | Available Loan Amount | Notes |
|---|---|---|
| customizable | Up to $1 million | Eligible in situations where: - Crop yields are less than 70% of normal, - Severe loss of revenues occur beyond normal commodity cycles, and - A net margin decline beyond 30% of established reference margin determined by Agristability Loans can be paid out at any time without penalty |
Value Added & Agribusiness Program (VAAP)
| Description | Term | Interest Rate |
|---|---|---|
| Loan can be used to start, expand, purchase, or upgrade facilities, equipment, or other capital assets. Covers working capital expenditures, including training costs to support new or expanded operations or products for value added or agribusiness enterprises and change of ownership. | Maximum 20 years. | Variable and fixed rates available. |
| Payment Frequency | Available Loan Amount | Notes |
|---|---|---|
| customizable | Up to $2 million | *Value Added – Defined as an activity that changes, alters or modifies a product that adds value to the product through a business or manufacturing process. Enterprises that are retail or service industries are not considered Value Added. **Agribusiness – Defined as an enterprise involved in an Agricultural Industry. |
