Canadian farmers who are finding it difficult to obtain loans due to the tightening of global credit markets can count on the Government of Canada to provide expanded access to credit, Prime Minister Stephen Harper announced Friday. The Harper Government will bring forward new legislation to guarantee an estimated $1 billion in loans over the next five years to Canadian farm families and cooperatives, most of which will go to those that were previously ineligible.
“Farmers remain the backbone of the local economy for hundreds of communities throughout Canada,” said the Prime Minister, who was joined by MP for Regina-Lumsden-Lake Centre, Tom Lukiwski. “These farmers deserve to know that they can count on the credit they need to build and grow their operations.”
The Prime Minister announced his intent to introduce legislation that will expand the scope of the Farm Improvement and Marketing Cooperative Loans Act, thereby delivering on key components of Canada’s Economic Action Plan.
- 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.
- Finally, Canada’s Economic Action Plan supports intergenerational farm transfers so that young farmers can more easily take over the family farm.
