OLDS — Several changes to the Agricultural Financial Services Corporation’s (AFSC) Next Generation Loan Program were announced in Olds Tuesday.
Agriculture & Irrigation Minister RJ Sigurdson announced the changes July 30 during AgSmart, Olds College’s outdoor on-campus agriculture innovation and practices show.
Sigurdson said the purpose behind the changes is to make it easier for people wanting to get into farming or people to return to the industry as well as make it easier for farm families to do succession planning.
“Entering or getting back into agriculture is not without its challenges right now, which is partly why over the last 20 years, we’ve seen fewer and fewer Albertans under 45 getting into agriculture,” Sigurdson said.
“We’ve also seen Alberta farm families struggle with the challenges around succession planning.”
So he announced the following changes to the program:
The eligibility for a one per cent interest rate incentive has been expanded to include new and returning farmers.
Also, to help with succession planning, it has been expanded to cover producers of any age, including those 40 and older.
Sigurdson said before these changes were made, the lifetime principal loans eligible for one per cent interest rate incentives stopped at $1 million per person.
Now, that ceiling has been cranked up to $1.5 million “to take into account increased input costs and inflation,” he said.
Another change says partnerships and corporate ownership groups now only need to have a 20 per cent stake, down from 25 per cent.
Also, borrowers can now obtain longer terms. They can now make interest-only payments for up to five years, up from two years.
The goal there is to help eligible borrowers manage cash flow, he said.
Sigurdson said the problems deterring people from getting into farming and issues around succession planning hit really close to home for him.
He has three sons and over the past couple of years, one has expressed more and more interest in farming.
“That’s what it’s about, is getting the youth into agriculture and understanding the potential of agriculture in Alberta,” he said.
AFSC chief executive officer Darryl Kay echoed Sigurdson’s summation of the changes.
He said Sigurdson has been “a huge supporter” of AFSC and its programs.
“We’ve been focused on Next Generation for a number of years at AFSC, but Minister Sigurdson reached out to us earlier this year and asked, ‘what more can we do?
“What more can we do to support the next generation of producers, new beginning producers trying to get into agriculture, recognizing that there’s a lot of challenges and it’s difficult to get into this industry? So we took those words to heart,” he said.
Sigurdson said it’s important to support the agriculture industry.
“I’ve had the opportunity to talk about how important ag is to Alberta and how it’s a crucial part of our history,” he said.
“It’s a contributor to our economy. It really is a part of the soul of Alberta.”
Sigurdson and Olds-Didsbury-Three Hills MLA Nathan Cooper, who introduced him, indicated it was very appropriate to announce the changes during AgSmart.
“It’s events like this that show how exciting it is to be a part of this industry and that it’s one that’s consistently growing and innovating,” Sigurdson said.
“It’s a diverse sector with plenty of opportunities for new entrants to find passion and success.
“Olds College is such a huge partner in training the next generation and I’m very appreciative for all the hard work they do.”
Cooper noted he too has kids.
“Today is really about them in many respects, and about the future of the province of Alberta,” Cooper said.
“Always incredible to be here at the college and particularly AgSmart, where we bring the future of agriculture here to Olds College and have an incredible exchange of ideas that will make our province, our economy in Western Canada and all of Canada better because of what happens here over the next two days.
“There’s always something exciting happening at Olds College. I feel like that is the next slogan for the institution.”