Making loans more accessible

November 8, 2017

The Canadian Agricultural Loans Act (CALA) is a loan-guarantee program designed to make loans more available to farmers and agricultural co-operatives. With low interest rates, longer repayment periods and lower down payments, farmers can use CALA loans to establish, improve and develop their farms. Agricultural co-operatives can use them to process, distribute or market their products of farming.

Thanks to CALA loans, farmers can invest in improvements that increase their competitiveness and profitability, help them meet consumer demand for food safety and environmental performance, and enable them to manage risk proactively.

CALA loans are open to:

• start-up farmers – those who are about to enter the agriculture industry
• beginning farmers – those who have been farming for less than six years
• existing farmers
• farmers taking over the family farm
• part-time farmers
• agriculture co-operatives, as long as at least 50 percent + 1 of their members are farmers

CALA-guaranteed loans are available through lenders, such as banks, credit unions or caisses populaires, as part of their normal lending practices. Existing farmers can obtain loans worth 80 percent of the value of the asset purchased (or 90 percent for beginning farmers).

Up to $500,000 in combined loans can be borrowed per farm to buy land, construct or improve buildings, buy equipment and even consolidate and refinance existing eligible debt. The repayment terms are 15 years for land purchases and 10 years for all other purposes. The loan limit for agricultural co-operatives is $3 million.

Talk to your lender about a CALA loan today. For more information, visit the Canadian Agricultural Loans Act program or call toll-free at 1-888-346-2511.