2.2 C
Elmira
Saturday, January 25, 2020
Connecting Our Communities

Supporting young farmers

TRENDING

News Briefs

Woolwich nixes traffic islands Displeased with the troublesome pedestrian islands installed during the Region of Waterloo’s reconstruction of Church Street...

Woolwich proposes 5% tax hike for 2020

Budget talks underway this week, Woolwich council is looking at five per cent hike in property taxes, a...

20-year-old agreement causes a stir

An Elmira environmentalist’s “smoking gun” appears to be shooting blanks. Al Marshall, a long-time critic of cleanup efforts at...

Woolwich looks to add green projects as part of climate action plan

Planting trees remains Woolwich’s priority in rolling out a 0.5 per cent greening levy on property taxes again...

THIS WEEK

Elmira
light rain
2.2 ° C
4 °
-0.6 °
48 %
4.1kmh
90 %
Sat
4 °
Sun
1 °
Mon
0 °
Tue
-1 °
Wed
-3 °

Aiming to help more young adults break into the agricultural sector, Farm Credit Canada has partnered with the Ministry of Agriculture and Agri-Food to create a new loan for young entrepreneurs.

The Young Entrepreneur Loan, launched earlier this month, is a spinoff from the success of the Young Farmer Loan, which was created in 2012.

FCC senior district director George Klosler explains how the first loan came to be.

“Several years ago, FCC, being committed to the industry of agriculture, and working through the direction of our board of directors was thinking of ways to encourage younger people to stay and enter the industry. The idea of a loan package particularly suited to younger people with a break on costs was developed and it was called our Young Farmer Loan,” Klosler said.

In 2016, FCC approved more than $2.6 billion in financing to farmers and entrepreneurs under the age of 40. He says there was a growing recognition that with the success of this program in helping young farmers, there were also people who are younger and entrepreneurial who don’t want to be on a farm operation, but want to work in the industry as a supplier, marketer or as somebody adding value to the primary production stream.

Thus, the Young Entrepreneur Loan, was born, which has many of the same features as the Young Farmer Loan.

If approved for the loan, applicants can be receive up to $1 million to purchase or improve their agriculture-related assets or to purchase shares in an agriculture-related business.

“Each of the loans come with a preferred pricing for a young person. Usually younger operators or operations have a higher risk profile, which can cause pretty significant interest rates to be charged,” Klosler said.

Jean-Philippe Lajoie took advantage of the Young Farmer Loan for his maple syrup operation. He said flexibility and the loan’s interest rate were appealing, allowing he and his wife to focus more on their operation and spend less time worrying about finances.

 

The Young Entrepreneur Loan has a 25 per cent minimum down payment requirement, custom variable and five-year fixed rates.

He says at FCC they spend a lot of time understanding the agriculture sector and its partners.

“When you have more knowledge and understanding you’re probably prepared to mitigate the risks around doing something in that industry better than somebody that doesn’t understand it so well. I believe with the Young Farmer Loan and soon to be with the Young Entrepreneur Loan we’re prepared to take on applications and provide the preferred pricing because we really understand what these folks are doing and how they’re going to succeed. And that’s critical,” Klosler said.

In many instances, he claims there can be a barrier when people or organizations don’t understand the situation, and the costs of servicing that sector are greater when you don’t have the knowledge.

Because of the success and interest in the Young Farmer Loan, it only made sense to leverage it more and mimic the program to serve the industry on a wider basis.

“One of the things that’s evident, certainly in primary agriculture is the aging population of the farm producers. Today we have more producers than ever that are over the age of 65 that continue to operate the farm and remain on the farm. Sometimes that may be because they don’t have, perhaps, somebody that’s willing to be a successor or the costs of that person coming forward to be a successor in the operation are costly,” Klosler said.

“And so, this is just an overall strategy nation-wide to incite younger people to be attracted to the industry, therefore incenting older producers to work with them and have just another tool in the toolbox in terms of passing on the farm assets to another younger generation.”

For more information, visit www.fcc.ca/youngentrepreneurloan.

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to The Observer's online community. Pseudonyms are not permitted. By submitting a comment, you accept that The Observer has the right to reproduce and publish that comment in whole or in part, in any manner The Observer chooses. Please note that The Observer does not endorse the opinions expressed in comments. Comments on this story are moderated according to our submission guidelines. Comments are welcome while open. We reserve the right to close comments at any time.

LIVING HERE

Catholic teachers join public board on the picket lines

Local Catholic elementary and high school teachers hit the picket lines Tuesday, marching up and down Arthur Street in Elmira as part of a one-day, province-wide strike. It’s not an...

In Print. Online. In Pictures. In Depth.

You obviously love community journalism. Thanks for visiting today. If you have a great local story, let us know.

Jacks post first loss of 2020, but post wins on either side

A four-game winning streak to start the new year having come to an end Saturday, the Wellesley Applejacks rebounded Tuesday night to post...

Water and sewer rates to rise again this year, as Woolwich approves budget

Flush with cash or otherwise, you’ll be paying more again this year for turning on the taps and taking care of business in...

Woolwich whittles down tax hike somewhat to 3.9%

Woolwich taxpayers are looking at a 3.9 per cent tax hike as councillors last week made a few tweaks to the budget, dropping...

Job vacancies become harder to fill in the townships

It’s becoming increasingly tough for employers to find the right candidates to fill vacancies, particularly in local and rural areas, says a new report...
- Advertisement -