MASC - Lending Programs - Bridging Generations

A unique program designed to assist young farmers looking to purchase an operation while providing retiring farms with a reliable payment schedule will be available to Manitoba farm families.

This program is an innovative land transfer program designed to reduce the up-front interest costs for young farmers while affording the retiring farmer a guaranteed annual income. 

• Bridging Generations Mortgage Guarantee
• Young Farmer Rebate
• Management Training Credit
• Flexible Financing Options

Summary 

Bridging Generations Mortgage Guarantee

Purpose of Program/Service
The Bridging Generations Mortgage Guarantee assists in intergenerational farm transfers by providing young farmers with low cost mortgage financing and a guaranteed income stream for the retiring farmers.  The retiree holds the mortgage, the borrower makes payments to MASC, who in turn, guaranteed payments to the retiree.

Who Qualifies?
Qualifying young farmers must be 18 - 39 years old and personally operate the farm to which the financing applies. They must be a Canadian citizen or a landed immigrant residing in Manitoba. The combined annual gross off-farm income, including spouse, cannot exceed $125,000. Their net worth must be less than $1, 375,000, farmers must be a Canadian citizen with a Manitoba bank account and hold the mortgage on the sale of the land/buildings.

Available Benefits/Assistance
Maximum guarantee is $250,000 for up to 15 years.  Interest rates are subject to agreement between all parties involved and cannot exceed MACC's prevailing rate minus 1.5%.  Payment frequencies are flexible to meet the needs of the operation and the retiring farmer. 

Young Farmer Rebate

 Purpose of Program/Service
The Young Farmer Rebate assists young, beginning and expanding farmers with limited equity to develop, expand or reorganize their farming operations as these producers are generally considered high risk by private lenders. The rebate also assists with intergenerational transfers.

Who Qualifies?
Qualifying young farmers must be 18 - 39 years old and obtain on MASC Direct Loan with a term of five years or more. They must personally operate the farm to which the financing applies.  Partnership and corporations are eligible for one rebate 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 is the same as for an individual borrower.

Available Benefits/Assistance
The Young Farmer Rebate is a 2% rebate on the first $150,000 of principal for each of the first five years of a loan. The lifetime maximum per individual is $15,000 with any unused portion applicable to subsequent loans. 

Management Training Credit Component

Purpose of Program/Service
The Management Training Credit encourages farm management training for the young farmer in areas such as business and financial planning, tax implications, marketing, employee management and computer usage.

Who Qualifies?
Qualifying young farmers must obtain a MASC Loan of at least $50,000 and satisfy annual training and other requirements.

Available Benefits/Assistance
A credit of 1% of the principal amount of the loan up to an annual maximum of $2,500 is available for five years, the lifetime maximum  loan available is $12,500.  Manitoba Agriculture, Food and Rural Initiatives staff will develop training requirements and plans based on individual consultations.  Eligible training is available from recognized educational facilities and Manitoba Agriculture, Food and Rural Initiatives. 

Flexible Financing Options

Purpose and Program/Service
Young farmers can access financing options to help with cash flow pressures during the start up phase.

Who Qualifies?
Young farmers who are 18 - 39 years old may qualify.

Available Benefits/Assistance
Loans for young farmers are available up to $600,000 for individuals and $1,200,000 for partnerships and corporations. Financing is extended to 90% of the value of land, whole farm, breeding livestock and permanent improvements; or allows interest - only payments for a five- year period, where the loan is secured with real property and up to 80% financing.

Manitoba Contact(s):
Lending Corporate Office
Manitoba Agricultural Services Corporation
Unit 100 - 1525 First Street S.
Brandon, Manitoba  R7A 7A1
Telephone: 204-726-6850
Fax: 204-726-6849
E-mail: brandon.lending@masc.mb.ca
Web site: http://www.masc.mb.ca/