Bridging Generations Initiative

Overview

farm generations

Assisting Manitoba's young farmers is one of MASC's primary lending objectives. The Bridging Generations Initiative (BGI) provides farmers under the age of 40 with financial incentives and customized terms and repayment options.

The Bridging Generations Initiative aims to assist with the transfer of farm assets between young farmers and retiring producers.

Young Farmer Rebate

The Young Farmer Rebate (YFR) assists young and beginning farmers to develop or expand their farming operations. As an eligible young farmer, the YFR gives you an annual rebate of up to 2% on the first $200,000 of your total loan principal, and is available in each year of a loan's first five years.

The lifetime maximum rebate per individual is $20,000, so any unused YFR portion can be applied to subsequent loans (on the first $200,000 borrowed).


YFR Rates

The rate for a YFR is determined by MASC's 5-year fixed interest rate at the time of loan commencement, as shown in the table below:

Table that shows YFR rate vs. MASC's 5-year rate
5-Year Rate YFR Rate
≤ 4% 1.00%
> 4% to 5% 1.25%
> 5% to 6% 1.50%
> 6% to 7% 1.75%
> 7% 2.00%

Example:

First loan

If you obtain an MASC loan of $100,000 and MASC's 5-year fixed interest rate is 4.500%, your YFR rate will be 1.25% and you will receive a rebate of $1,250 per year for the loan's first five years (total YFR for the loan: $6,250).


Second loan

If you obtain a second MASC loan of $100,000 (using the same 5-year fixed interest rate of 4.500%), you will receive the remainder of your lifetime maximum YFR ($1,250 per year for the loan's first 5 years, or $6,250 total).


YFR Maximum

You have borrowed a total of $200,000, and have reached the total loan principal for which the YFR can be applied.

The cumulative total YFR received on your first $200,000 borrowed is $12,500.


Eligible Applicants

To qualify for the Young Farmer Rebate, you must be 18-39 years of age, a Manitoba resident, and personally operate the farm to which the loan applies.

Partnerships, corporations and cooperatives are eligible for a YFR, where at least one partner or shareholder would be eligible if they applied as an individual for a loan. The maximum rebate to a partnership, corporation or cooperative is the same as for an individual borrower.


Eligible Loans

The Young Farmer Rebate applies on MASC loans to qualified individuals, joint farm units, corporations, cooperatives and partnerships with amortization terms of five years or more.

The Young Farmer Rebate is not available on Environmental Enhancement Loans, Alternate Energy Loans, or Comprehensive Refinancing Loans.

Flexible Financing

Finding capital may be challenging when starting or expanding a new farming operation. With no proven track record or hefty down payment, a young farmer might not find reasonably priced financing to secure an agricultural loan.

MASC's Bridging Generations Initiative offers flexible financing to young farmers to assist them through the critical purchase and start-up period of farm operations. Eligible young farmers (18 to 39 years of age) can opt for either:

  • 90% financing, significantly reducing the down payment required, or
  • 5 years of interest-only payments, which eases the young farmer's cash flow while an enterprise is being established

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