Farm Credit Canada Loans & Financing
Comprehensive guide to financing your farmland purchase. Learn about FCC loan programs, interest rates, qualification requirements, and alternative financing options for Canadian agricultural real estate.
Farm Credit Canada is Canada's leading agricultural lender, providing specialized financing for farm purchases, equipment, and operating capital. As a Crown corporation, FCC offers competitive rates and terms tailored specifically to agricultural operations.
FCC Loan Programs for Farmland
Long-term financing for farmland purchases, farm expansion, and agricultural building construction.
- Fixed and variable rate options
- No prepayment penalties (variable rate)
- Flexible payment schedules
Enhanced financing options for farmers under 40 years old, with reduced down payment requirements and mentorship programs.
- Access to FCC's AgExpert software
- Business coaching and mentorship
- Educational resources
Short-term financing for seasonal operating expenses, inputs, livestock, and working capital needs.
- Revolving line of credit available
- Interest-only payment options
- Can be combined with real estate loans
Financing for tractors, combines, implements, and other farm equipment essential to agricultural operations.
- New and used equipment eligible
- Balloon payment options
- Lease-to-own available
Qualification Requirements
Required Documentation
- Financial Statements: 3 years of personal and business tax returns
- Business Plan: Detailed operational and financial projections
- Credit Report: Personal and business credit history
- Net Worth Statement: Assets and liabilities summary
- Property Appraisal: Independent valuation of farmland
Key Qualifying Factors
- Credit Score: Minimum 650, preferably 700+
- Debt Service Coverage: 1.25x or higher (income vs. debt payments)
- Down Payment: 25-35% of purchase price in liquid assets
- Agricultural Experience: Farming background or business plan showing expertise
- Equity Position: Total debt should not exceed 65-75% of asset value
FCC Loan Application Process
Pre-Qualification
Contact FCC or use their online calculator to determine loan eligibility and estimate terms. Review your credit report and gather financial documents.
Formal Application
Submit complete application with all required documentation. FCC assigns a relationship manager to your file.
Property Appraisal
FCC orders independent appraisal of the farmland. You may need to pay appraisal fee upfront ($2,000-$5,000).
Underwriting Review
FCC credit team analyzes your financials, business plan, and property value. May request additional information or clarifications.
Credit Approval
Receive formal loan approval with final terms. Review and negotiate any conditions or covenants.
Closing
Complete legal documentation, property title transfer, and fund disbursement. Lawyer fees typically $1,500-$3,000.
Alternative Farmland Financing Options
Major banks (RBC, TD, Scotiabank) offer farmland mortgages with competitive rates.
Many provinces offer loan guarantees, grants, and specialized financing programs.
Negotiate financing directly with the farm seller, often with flexible terms.
* This is a simplified calculation for illustration purposes. Actual payments may vary based on payment frequency, additional fees, and changing interest rates.