Farm Credit Canada Introduces Transition Loan Program

Posted on July 4th, 2025 in Agribusiness

A daughter and father in a chicken farm, with the daughter lifting a bale of straw and the father assisting, amidst a large number of broiler chickens with feeding systems in the background.

Farm and agri-food business owners planning to transfer assets to new owners now have a new financing option, thanks to recent enhancements to Farm Credit Canada’s (FCC) Transition Loan. These changes come at a critical time, as more than $50 billion in farm assets are expected to change hands in Canada by mid-July.

The enhanced FCC Transition Loan is designed to make ownership transitions smoother for both sellers and buyers. It supports the transfer of assets in farms, agribusinesses, and food businesses – whether the transfer is within the family or to an outside party.

Flexible Disbursement

One of the most significant updates is that sellers can now receive payments over a period of up to 10 years, providing greater flexibility and financial security during the transition.

Benefits for the seller:

Sale proceeds fully secured and paid by FCC
Customized disbursement schedule—up to 10 years
Opportunity to support the next generation of entrepreneurs

Benefits for the buyer:

No upfront capital required for the down payment
Flexibility to optimize cash flow or build equity (with options to reduce interest and repay sooner)
Access to FCC’s AgExpert software to support financial planning

Whether buyers are looking to maximize early cash flow with interest-only payments or accelerate equity growth through principal payments, FCC’s Transition Loan offers tailored options to suit various business goals. To explore different repayment scenarios, use the Transition Loan Calculator available here.

The FCC Transition Loan supports young producers and agri-food entrepreneurs and works alongside FCC’s full range of services, including personalized guidance from FCC Advisory Services. Learn more at Farm Credit Canada.