Alberta’s provincial ag lending agency is set to offer farmers a new revolving credit facility beginning next month.
Agriculture Financial Services Corp. (AFSC) on Monday announced its new Revolving Loan Program, which it said will provide eligible farmers with "access to funds in a more flexible way."
Specifically, the program is meant to give AFSC clients greater control over when they can access funds, up to an established limit, through a "pre-approved, self-selecting, renewable lending agreement with competitive interest rates."
Clients can re-borrow funds that have been repaid, up to that maximum approved limit, AFSC said.
The program will also give clients the option of setting their rates for one, two or three years.
The new program comes "in response to client feedback and requests from agriculture industry groups seeking an alternative delivery approach to AFSC’s traditional term loan programs," AFSC president Brad Klak said in a release.
Demand for AFSC loans has "grown steadily" over the last seven years and is now approaching $500 million per year, he said.
"Young producers, in particular, face many challenges. Financing opportunities such as this may aid in removing hurdles young producers are currently facing," Agriculture Minister Evan Berger said in the province’s release.