Revamping Alberta’s Next Generation Loan Program to attract young producers

Agriculture has always been the backbone of Alberta’s history, economy, and future prosperity. However, over the past two decades, the province has seen a worrying trend: a steep decline in the number of young and middle-aged producers, while the number of farmers over 55 has increased significantly. In response, Alberta’s government is taking decisive action to reverse this trend by making significant changes to the Agriculture Financial Services Corporation (AFSC)’s Next Generation Loan Program (Next Gen).

“Access to capital and land is often out of reach for new producers,” says Doug Roxburgh, Vice Chair, Alberta Beef Producers, and cattle producer near Bentley. “The AFSC Next Generation Loan is pivotal in ensuring that the backbone of our industry—the next generation—has the means to get started.”

These changes aim to make it easier for producers to enter and re-enter the agriculture industry, provide greater opportunities for new and growing operations, make succession planning more appealing, and encourage young people to pursue careers in farming.

“The landscape of agriculture is changing, and so are the faces of new entrants,” says John Doherty, ABP Delegate and a cattle producer near Wildwood. “By redefining eligibility criteria, the AFSC Next Generation Loan recognizes that new entrants bring fresh energy, and perspectives through a range of ages.”

Key Changes to the Next Gen Program

The revamped Next Gen program will now offer several new benefits:

• Expanded Eligibility: Producers of any age entering or returning to farming are now eligible for a one percent interest rate incentive, previously available only to those under 40.
• Increased Loan Limits: Producers can receive an interest rate incentive on their total lifetime loan principal up to $1.5 million, an increase from the previous $1 million.
• Lower Ownership Requirements: Applicants now need only 20 percent ownership in a farming operation, down from 25 percent.
• Extended Interest-Only Payments: Eligible borrowers can make “interest-only” payments on their loans for up to five years, up from the current two years.

These changes, effective September 1, 2024, are designed to reduce barriers for new and returning farmers, ensuring the long-term sustainability and growth of Alberta’s agriculture industry.

RJ Sigurdson, Minister of Alberta Agriculture and Irrigation, emphasizes the importance of these updates.

“By updating and expanding the Next Generation Loan program, young and young-at-heart Albertans will have fewer barriers when entering Alberta’s agriculture industry. Increasing new and returning entrants to agriculture will ensure the sector continues to be a healthy and important contributor to Alberta’s economy,” says Minister Sigurdson.

Darryl Kay, CEO of AFSC, echoes the sentiment. “The changes to the Next Generation Loan program are key to the long-term sustainability and growth of Alberta’s agriculture industry. I’m proud that AFSC will be here to assist these new and beginning farmers as they get started in farming and build on the work of earlier generations.”

Resolutions were put forward in ABP’s Southwest Zone in favour of an update to the AFSC Next Generation Loan. Alberta Beef Producers thanks the Government of Alberta and AFSC for listening to cattle producers and evolving this program in support of the future of the agriculture industry.

For more information on the Next Generation Loan Program and how to apply, interested producers can visit their local AFSC branch, or click here.