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La Financière agricole du Québec

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Protection against Interest Rate Hikes

Description of the Protection against Interest Rate Hikes Program

La Financière agricole offers two kinds of protection against interest rate hikes:

Preferred Rate (PR)Secure Rate for Aspiring Farmers (SRAF)

Protection applicable to financing of up to $500,000, for the loan term

  • Protection offered to part-time or full-time aspiring farmers
  • Protection applicable to financing of up to $500,000
  • Repayment for a maximum period of five years

This protection is initiated, for a specified period of time, when market interest rates exceed a defined threshold.

Once a SRAF eligibility period is over, the PR applies to full-time operations based on the terms shown in the table below.

SpecificationsPreferred Rate (PR)Secure Rate for Aspiring Farmers (SRAF)
Eligibility
  • Be 18 years of age and over
  • No criterion for experience
  • Be a full-time agriculture client
  • Be between 18 and 40 years of age
  • Have one year’s experience in farming
  • Be a part-time or full-time aspiring farmer (own at least 20% interest in the company)
Characteristics60% of the portion of interests exceeding 8%Calculated according to the interest rate on 1-year home mortgages established weekly by the Bank of Canada, to which the 0.30% rate reduction provided for in the FADQ's agriculture financing program is applied. Fermer l'infobulle100% of the portion of interests exceeding 5, 6 or 7%Calculated according to the interest rate on 1-year home mortgages established weekly by the Bank of Canada, to which the 0.30% rate reduction provided for in the FADQ's agriculture financing program is applied. Fermer l'infobulle
TermOver the loan term
  • 5 years, starting automatically:
    • upon obtaining an aspiring farmers’ grant or
    • from the full payment of the loan which made the company eligible
  • After this period of 5 years, the PR applies to full-time operations

The following clients are not eligible for the Protection against Interest Rate Hikes:

  • entreprises à temps partagé
  • membres-emprunteurs
  • biens et services
  • entreprises à vocation agricole

Explanatory video: Protection contre la hausse des taux d’intérêt - 12 min (only in French)