Alberta’s provincial ag financing agency has raised its bar for how much a farmer or agribusiness can borrow.
Agriculture Financial Services Corp. (AFSC) on Wednesday said it has increased the maximum loan or guarantee it provides to any individual or entity to a “cumulative total” of $5 million, up from $2 million.
AFSC also raised its limit for financing of larger agricultural and other eligible projects, to $25 million from $10 million. Both changes are effective as of April 1.
“During these uncertain times, it is important that Alberta’s agribusinesses and producers continue to have access to the capital they require in order to continue being innovative and industry leaders in Canada,” Ag Minister George Groeneveld said in a release.
AFSC lending programs are meant to provide longer-term, fixed-rate financing with “flexible” repayment options for all eligible farmers and commercial businesses, as well as prepayment privileges without penalty. The option for 20-year fixed-rate financing is unique to AFSC.