Courtesy of Farm Credit Canada

Farm Credit Canada has announced a new $500 million loan program which is designed to help young and beginning farmers get started.  The new loan allows qualified producers under the age of 40 to get loans of up to $500,000 to purchase or improve farmland and buildings.

Scott Yule from Farm Credit Canada says "It will give them an opportunity to borrow money at a rate that would be similar to somebody who has a lot more experience than they do."  He says they can also use the loans to grow their business, while giving them competitive rates, flexible terms and a break on fees.

Yule says lack of money has been an issue for young farmers for a while because it's a capital intensive business and farmers need money to get started.  According to the 2006 census, farmers between the ages of 18 and 39 make up 16% of Canadian producers.