Alberta Announces Changes to Next Generation Loan Program 

The Alberta government is expanding eligibility and updating the terms of Agriculture Financial Services Corporation (AFSC)’s Next Generation Loan Program (Next Gen).  

Announced Tuesday, the changes are aimed at making it easier for producers to enter and re-enter the agriculture industry, give greater opportunities to new and growing operations, make succession more appealing, and encourage new and young people to get into farming. 

The updates will expand eligibility for interest rate incentives, lower ownership percentage requirements, and increase the time available for “interest-only” loan payments, said a government release. 

Specifically, the changes mean: 

• Producers of any age who are entering or returning to farming are eligible for a 1% interest rate incentive, while before it was only available to those under age 40. 

• Producers may receive an interest rate incentive on their total lifetime loan principal up to $1.5 million, an increase from the previous $1 million. 

• Applicants now require 20% ownership in a farming operation, down from 25%. 

• Eligible borrowers can make “interest-only” payments on their loans for up to five years, up from the current two years. 

“By updating and expanding the Next Generation Loan program, young and young-at-heart Albertans will have fewer barriers when entering Alberta’s agriculture industry,” said Alberta Ag Minister RJ Sigurdson. “Increasing new and returning entrants to agriculture will ensure the sector continues to be a healthy and important contributor to Alberta’s economy.” 

Since 2001, the number of Alberta farmers under age 35 has decreased by 43%, while the number over 55 has increased 32%.