Agriculture and agri-food business owners transferring farm or business assets to new owners now have a new option to consider, given recent changes to Farm Credit Canada’s (FCC) Transition Loan. The loan’s new terms come at a very important time. Canada’s agriculture and food system is sitting on more than $50 billion in farm assets expected to be transferred in the next 10 years.

“Transferring the family farm or business can be a stressful thing to manage, but the support of the FCC Transition Loan can help address the financial barriers folks experience,” said Hon. Heath MacDonald, federal minister of agriculture and agri-food. “It also creates opportunities for people looking to start or expand their operations, making it a real investment in the future of our agricultural sector.”

The enhanced FCC Transition Loan is specifically designed to facilitate the transfer of assets, making it easier for both buyers and sellers. The new terms allow disbursements to the seller over a period that extends to 10 years. The loan is available for farms, agribusiness or food businesses going through changes in ownership, be it within or outside the family.

“One of the most consistent challenges faced by Canadian producers is transitioning their operations to either family or an outside qualified buyer. It is complex, nuanced, and emotional,” said Justine Hendricks, FCC president and CEO. “For our part, we’ve been working hard to build a loan product that makes transition and sale easier for both buyers and sellers. Whether the buyers are new to the sector or not, this product is focused on delivering peace of mind and flexibility to Canadian agriculture and agri-food producers. It’s designed specifically with affordability and success in mind.”

Benefits for the seller:

• -  Guaranteed full payment of the sale proceeds by FCC;
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• -  Customized payment schedule for up to 10 years; and
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• -  Opportunity to support a next generation entrepreneur.

Benefits for the buyer:

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• -  No need for upfront capital for a down payment;
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• -  Flexibility to choose between improving cash flow or building equity (potential to reduce interest expense and pay off loan sooner); and
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• -  FCC’s AgExpert software is included.
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Whether a buyer is aiming to maximize cash flow with interest-only payments, or build equity quickly with accelerated principal payments, they can explore options using the Transition Loan calculator here.

The FCC Transition Loan complements FCC’s suite of products and services that support young producers and entrepreneurs, including FCC Advisory Services. For more information on the FCC Transition Loan, visit www.fcc.ca/transitionloan.

Source:  Farm Credit Canada June 25, 2025 news release