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Government announces credit changes for farmers

NEWS HIGHLIGHT

Government announces credit changes for farmers
Canadian farmers finding it difficult to
obtain loans due to tightened global markets will soon have expanded
access to credit.

May 2, 2009, Edgeley, Sask. – Canadian farmers finding it difficult to
obtain loans due to tightened global markets will soon have expanded
access to credit.

The federal government is bring forward new legislation guaranteeing an estimated $1 billion in loans over the next five years for Canadian farm families and cooperatives, most of which will go to farmers and cooperatives that were previously ineligible.
 
The legislation will expand the scope of the Farm Improvement and Marketing Cooperative Loans Act.

• The proposed changes contained in Canada’s Economic Action Plan include increasing the amount of guaranteed credit available to farmers.  
• The plan also calls for expanding the criteria for the program so that new farmers, who are excluded from receiving loans under the existing act, will also be able to access this credit.
• The eligibility criteria for agricultural co-operatives will also be expanded so that more co-ops can also receive funding.
• Canada’s Economic Action Plan supports intergenerational farm transfers so that young farmers can more easily take over the family farm.