Agricultural Financing

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What Is A Agricultural Mortgage?

Agricultural mortgages are not limited to just farm mortgages, but can also be used for nurseries, ranches, pastures, and gardens, among others. While there are similarities between traditional mortgages and agricultural mortgages, there are also key differences to be aware of that can impact your eligibility and the type of interest you may incur. Farm Credit Canada (FCC) is the largest agricultural term lender in Canada, established under the Farm Credit Act of 1959. As a Crown corporation reporting to the Canadian Parliament through the Minister of Agriculture and Agri-Food, FCC is dedicated to serving the financial needs of Canadian farmers. One benefit of agricultural mortgages is the increased flexibility they offer for payment options, repayment periods, and debt transfer options not available through a standard consumer mortgage.

Mortgage Rates For Agriculture Financing

Agricultural mortgages, like all mortgages, are subject to market conditions and rates can fluctuate accordingly. It is important to consider whether you prefer a fixed-rate or variable-rate agricultural mortgage. With a fixed-rate mortgage, the interest rate remains constant throughout the term of the loan, providing financial stability and predictability. On the other hand, a variable-rate mortgage may offer savings if rates are expected to decrease, but can result in increased mortgage payments and interest payments if rates rise unexpectedly. Therefore, it is important to weigh the potential risks and benefits of each type of mortgage before making a decision.
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