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
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.
Loans of up to $3.5 million are available for all borrowers.
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.
Most Direct Loans have repayment terms of up to 25 years, and you may select monthly, quarterly, or semi-annual payments.
MASC Direct Loans have no prepayment penalties.
Age of Equipment
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 10 years. For previously owned equipment, the maximum term is 7 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.
Direct Loans may be secured with real, personal, and/or other securities as required.