Grow, Diversify and Expand Your Farming Business
The Canadian Agricultural Loans Act (CALA) is a federal government program designed to finance farm improvements, and fund the processing, distribution and marketing of farm products.
Ready to Apply?
A Canadian Agricultural Loan Is Commonly Used For:
- Financing real estate or other large farm assets
- Long-term financing – loan terms are up to 10 years, and 15 years when financing land
- Expanding existing farm operations
- Farm products marketing co-operatives are eligible if at least 50% + 1 of the members are farmers
Get the Financing You Need
Individual farmers can receive up to 80% financing (new farmers up to 90% financing) of the asset’s value to a maximum of $500,000 for property assets or up to $350,000 for all other eligible assets.
Competitive Interest Rates
- Maximum interest rate on variable rate loans is Prime + 1%
- Maximum interest rate on fixed rate loans is the Residential Mortgage Rate + 1%
Wide Range of Assets Eligible for Financing
Eligible assets include land, buildings, construction, machinery, livestock, consolidation, share purchases and crop storage condominiums.
Flexible Payments Available
Choose to make payments on a schedule that works for your farm business; monthly, quarterly, semi-annually or annually.
What Else Do You Need to Know?
RBC administration fee of the lesser of 0.25% of the CALA loan amount or $250 (0.1% if loan exceeds $250,000).
Maximum interest rate on variable rate loans is Prime + 1%; for fixed rate loans the maximum interest rate is the Residential Mortgage Rate + 1%.
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The calculations and amortization schedule produced are: (i) based on the accuracy and completeness of the data you have entered, (ii) based on assumptions that are believed to be reasonable, and (iii) for estimation purposes only and should not be relied upon for specific financial or other advice. When you make your credit application, interest rates may have changed or may be different due to information contained in your application.
Royal Bank of Canada does not make any express or implied warranties or representations with respect to any information or calculations in connection with this business loan calculator. Royal Bank of Canada will not be liable for any losses or damages arising from any errors or omissions in any information or calculations, or any action or decision made by you in reliance on any information or calculations.