For many farmers, access to credit is essential for maintaining and expanding their operations. While many established farmers have no trouble obtaining credit from traditional institutions, younger and expanding farmers with less proven collateral and/or capability can sometimes find it difficult to obtain the credit they need on the terms they want.
The Manitoba Agricultural Services Corporation can assist you with the financial arrangements necessary to make your operation successful. MASC's Direct Loans provide beginning and established farmers with short, intermediate and long-term financing at reasonable interest rates and flexible repayment terms.
purchase, construction or renovation of farm production buildings
purchase, construction or renovation of on-farm homes
purchase of breeding livestock
purchase of supply-managed quota (dairy and poultry)
debt consolidation or refinancing
purchasing or renovating greenhouses and nurseries
operating expenses
Eligibility
Qualified applicants for a Direct Loan can be individuals, joint farm units, partnerships, corporations, or cooperatives.
You must be 18 years of age or older, a Manitoba resident, and a Canadian citizen (or lawfully admitted to Canada for permanent residence).
The farm must be potentially viable and meet security requirements, and you must personally operate the farm to which the loan applies.
Loan Details
Loan Maximum
Loans of up to $ million are available for all borrowers.
Interest Rate
Interest rates for Direct Loans can be fixed for the full life (amortization) of the loan, or renewed every 1, 2, 3, 4 or 5 years.
Repayment
Most Direct Loans have repayment terms of up to years, with monthly, quarterly, or semi-annual payment options.
MASC Direct Loans have no prepayment penalties.
Maximum terms for equipment (by age)
Age of Equipment
Maximum Term
New
years
Previously owned
years
Equipment Financing
Direct Loans for the purpose of equipment financing have repayment terms based on the age of the equipment. The maximum term for purchase of new equipment is years. For previously owned equipment, the maximum term is years.
Purchase of Bred Heifers
To help align principal payments with cash flow, Direct Loans for the purpose of purchasing bred heifers have the option of an additional six months of interest-only payments.
Security
Direct Loans may be secured with real, personal, and/or other securities as required.
Use the MASC Loan Calculator to help select loan terms that are right for your operation.
Young Farmer Rebate
The Young Farmer Rebate (YFR) is a rebate of up to per cent on the first $ of principal for each of the first 5 years of the loan, available to producers aged up to 39 years old.
Flexible Financing
Producers between 18 and 39 years of age may be eligible for flexible financing terms on their MASC loan, greatly reducing their start-up costs and initial cash flow pressures.
Qualified producers can choose between interest-only payments for the first 5 years of the loan, or per cent financing with only a 10 per cent down payment.
Also included in the Direct Loans category are Alternate Energy Loans, Comprehensive Refinancing Loans and Environmental Enhancement Loans.
Alternate Energy Loans Details
Alternate Energy Loans are available to finance for the capital costs associated with alternate energy projects, such as ethanol, biomass, biodiesel and wind operations.
Environmental Enhancement Loans provide financial assistance to producers for the purpose of improving the environmental sustainability of their operations.
