Enhanced FCC Transition Loan terms aim to better support ag and food entrepreneurs Français
, June 25, 2025 /CNW/ - 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 The Honourable 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;
Customized payment schedule for up to 10 years; and
Opportunity to support a next generation entrepreneur.
Benefits for the buyer:
No need for upfront capital for a down payment;
Flexibility to choose between improving cash flow or building equity (potential to reduce interest expense and pay off loan sooner); and
FCC's AgExpert software is included.
"The FCC Transition Loan has been a game changer for our farm," said Aaron and Amber Hoffus, grain, oilseed and cow-calf producers in Bjorkdale, Sask. "It has helped us to secure land and equipment, with flexible terms and saving interest helped us to continue growing. We've had the opportunity to grow and build our family farm for our kids, and hopefully generations to come, and would recommend the FCC Transition Loan to anyone looking to do the same. The enhancements to this particular FCC loan come at a critical time and can help other entrepreneurs like us better manage the realities that come with the transfer of assets."
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.
About FCC
FCC is proud to be 100 per cent invested in Canadian agriculture and food. The organization's employees are committed to the long-standing success of those who produce and process Canadian food. FCC provides flexible financing and capital solutions, while creating value through data, knowledge, relationships and expertise. FCC offers a complement of financial and non-financial products and services designed to support the complex and evolving needs of the industry. As a commercial Crown corporation, FCC is a stable partner that reinvests profits back into the industry and communities it serves. For more information, visit fcc.ca.
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