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.
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.
You can find full details about the program here: https://www.fcc-fac.ca/en/financing/agriculture/transition#5BqOgSI=o
Source: FCC Press Release, “Enhanced FCC Transition Loan terms aim to better support ag and food entrepreneurs”, June 25, 2025
