Farming & Agricultural Loans

Agricultural Loan Solutions for Every Stage of Your Farming Journey

Agricultural Loan Solutions for Every Stage of Your Farming Journey

If you're a farmer or agribusiness owner in Canada, securing the right financing can mean the difference between stagnation and long-term success. Whether you're looking to expand your farm, invest in new equipment, purchase land, or support a generational transition, understanding the different types of agriculture and farm loans available is essential.

At Cody Rowe – Mortgage Specialist, we are dedicated to helping our clients in the agricultural sector access the best financing solutions tailored to their unique needs. This guide provides a comprehensive overview of the most common and effective farm loan options in Canada, along with government-supported programs designed to boost farming success.

What Are Agricultural and Farming Loans?

Agricultural and farming loans are specialized lending products that provide farmers and agribusinesses with the capital they need to grow, operate, or transition their farms. These loans can be used for a wide range of purposes, including:

Land purchases and expansion
Equipment upgrades and repairs
Livestock purchases
Working capital for day-to-day operations
Farm succession and generational transitions
Infrastructure development (irrigation, storage, etc.)

Because of the seasonal and cyclical nature of farming, agricultural loans often feature flexible repayment schedules that align with harvest cycles.

Types of Farm Loans Available in Canada

1. Farm Mortgage Loans

Farm mortgage loans allow you to purchase farmland, refinance existing land, or expand your agricultural operation. These loans are typically secured by the land being purchased or refinanced.

Key Features:

Longer repayment terms (up to 25–30 years)
Fixed or variable interest rates
Can be used for land purchases, refinancing, or consolidation

Ideal For:

Farmers looking to expand their land base
New farmers purchasing their first property
Succession planning through land transfer

2. Farm Equipment Loans

These loans are used to purchase new or used equipment such as tractors, harvesters, irrigation systems, or other machinery.

Key Features:

Fixed repayment schedules
Shorter loan terms (typically 3–10 years)
Can be structured as leases or loans

Ideal For:

Modernizing equipment
Increasing efficiency and production capacity

3. Operating Lines of Credit (Working Capital Loans)

Operating loans provide farmers with the working capital needed to cover day-to-day expenses, including seed, feed, fertilizers, labour, and more.

Key Features:

Flexible borrowing up to a pre-approved limit
Interest-only payments during the season
Repayable after harvest or revenue collection

Ideal For:

Seasonal cash flow management
Addressing unexpected short-term needs

4. Livestock Loans

Livestock loans provide funding for purchasing cattle, poultry, hogs, or other animals for breeding or production.

Key Features:

Can be structured as term loans or lines of credit
Often secured against the livestock itself
Flexible terms based on animal growth or production cycles

Ideal For:

Livestock expansion
Entry into new markets or products

5. Agribusiness Loans

Agribusiness loans are designed for larger agricultural operations or related industries such as food processing, storage facilities, and transportation.

Key Features:

Large-scale financing amounts
Tailored repayment schedules
Can include commercial mortgages, equipment financing, and working capital

Ideal For:

Integrated farming businesses
Value-added processing and storage

6. Beginning Farmer Loans (Young Farmer Financing)

Getting started in farming is tough, especially for young or new farmers. Beginning farmer loans help individuals gain access to capital when they lack the experience or equity of established operators.

Key Features:

Lower down payments
Flexible underwriting criteria
May be supported by government-backed programs

Ideal For:

First-time farm owners and operators
Next-generation family farmers

Government Agricultural Loan Programs in Canada

1. Canadian Agricultural Loans Act (CALA) Program

The CALA program is a federal initiative that supports farmers by sharing the risk with lenders. It guarantees up to 95% of the loan, allowing farmers easier access to credit.

Highlights:

Maximum loan amounts up to $500,000
Eligible for land, buildings, equipment, and more
Available to farmers, co-operatives, and agribusinesses

2. Farm Credit Canada (FCC)

FCC is a Crown corporation offering a wide range of farm loans and business support services. From term loans to leasing and venture capital, FCC plays a key role in Canadian farm financing.

Programs Include:

Young Farmer Loans
Transition Loans for intergenerational transfer
Equipment and vehicle financing
Working capital loans

3. AgriInvest and AgriStability

These are government risk management programs that indirectly help support farm financial health.

AgriInvest:

A savings account with matching government contributions for managing small income declines.

AgriStability:

Provides coverage for larger income declines due to market conditions, weather, or rising costs.

Why Work with Cody Rowe – Mortgage Specialist?

Securing financing in the agricultural sector isn't just about applying for a loan—it's about understanding the big picture: seasonality, market pressures, asset leverage, succession planning, and long-term sustainability. That’s where we come in.

What We Offer:

Access to top lenders with agriculture-specific programs
Guidance through CALA, FCC, and provincial funding options
Personalized loan structuring based on your farm’s cash flow
Support for young farmers and next-generation transfers
Holistic financial strategy including refinancing, equity loans, and credit optimization

Service Areas:

We proudly serve clients across British Columbia and beyond, including Vancouver Island, the Gulf Islands, the Interior, and the Lower Mainland.

Need Expert Help with Agriculture or Farming Loans?

Whether you're a new farmer looking for startup capital, a family farm planning a transition, or a large agribusiness pursuing growth, Cody Rowe – Mortgage Specialist is here to help you secure the right farm loan solution.

Reach out today for a free consultation and discover how we can support your success in Canadian agriculture.

Frequently Asked Questions (FAQs)

Who is eligible for a Young Farmer Loan?

If you’re a qualified producer under the age of 40 and looking to purchase agricultural assets, land, or equipment, you may be eligible for the Young Farmer Loan. Even with a limited credit history, financing up to $2 million is available.

Can I get a loan even if I don’t have a large down payment?

Yes. Through the Transition Loan for farm transfers, eligible buyers can have their down payment financed and may choose payment structures that improve cash flow, including interest-only options.

What types of agricultural assets can I finance?

Our agricultural loans cover a wide range of assets, including farmland, livestock, equipment, buildings, and operational supplies. There are also loan options available through crop retailers and livestock suppliers.

How do farm transfer loans benefit both the buyer and seller?

Farm transfer loans offer flexible disbursements over time, protecting the seller with guaranteed payments and potentially offering tax benefits. For the buyer, these loans reduce upfront capital requirements and provide flexible repayment terms.

What repayment options are available for farming loans?

We offer various repayment structures, including deferred payments, extended disbursements, interest-only payments, and revolving credit lines to align with your farm's cash flow cycle and seasonal income.

Agricultural Loan Solutions for Every Stage of Your Farming Journey

Agricultural Loan Solutions for Every Stage of Your Farming Journey

What Are Agricultural and Farming Loans?

Types of Farm Loans Available in Canada

1. Farm Mortgage Loans

Key Features:

Ideal For:

2. Farm Equipment Loans

Key Features:

Ideal For:

3. Operating Lines of Credit (Working Capital Loans)

Key Features:

Ideal For:

4. Livestock Loans

Key Features:

Ideal For:

5. Agribusiness Loans

Key Features:

Ideal For:

6. Beginning Farmer Loans (Young Farmer Financing)

Key Features:

Ideal For:

Government Agricultural Loan Programs in Canada

1. Canadian Agricultural Loans Act (CALA) Program

Highlights:

2. Farm Credit Canada (FCC)

Programs Include:

3. AgriInvest and AgriStability

AgriInvest:

AgriStability:

Why Work with Cody Rowe – Mortgage Specialist?

What We Offer:

Service Areas:

Need Expert Help with Agriculture or Farming Loans?

Frequently Asked Questions (FAQs)

Who is eligible for a Young Farmer Loan?

If you’re a qualified producer under the age of 40 and looking to purchase agricultural assets, land, or equipment, you may be eligible for the Young Farmer Loan. Even with a limited credit history, financing up to $2 million is available.

Can I get a loan even if I don’t have a large down payment?

Yes. Through the Transition Loan for farm transfers, eligible buyers can have their down payment financed and may choose payment structures that improve cash flow, including interest-only options.

What types of agricultural assets can I finance?

Our agricultural loans cover a wide range of assets, including farmland, livestock, equipment, buildings, and operational supplies. There are also loan options available through crop retailers and livestock suppliers.

How do farm transfer loans benefit both the buyer and seller?

Farm transfer loans offer flexible disbursements over time, protecting the seller with guaranteed payments and potentially offering tax benefits. For the buyer, these loans reduce upfront capital requirements and provide flexible repayment terms.

What repayment options are available for farming loans?

We offer various repayment structures, including deferred payments, extended disbursements, interest-only payments, and revolving credit lines to align with your farm's cash flow cycle and seasonal income.