The FIRA program offers loan and lease-purchase options for entrepreneurs under 40.
Agriculture Minister André Lamontagne made the announcement Monday, saying the CAQ government will invest $50 million, while the Fonds de solidarité FTQ and the Desjardins Group will each contribute $25 million.
Last March, Premier François Legault recognized a “crisis” in agriculture. He said he was aware of the effect of inflation and rising interest rates on the agricultural world.
With the FIRA, the government says it wants to enable young entrepreneurs to realize their dream of launching into agriculture.
The program offers loan and lease-purchase options for entrepreneurs under 40. It will reduce upfront payments to help businesses preserve cash flow during their first years of operation.
Lamontagne said the FIRA eligibility period will be extended up to 10 years after start-up. The maximum loan amount will increase from $250,000 to $500,000 per case.
In addition, to provide more predictability, the amortization period of subordinated loans and the duration of leases will increase from 15 to 20 years, it said.
“With this new FIRA, your government confirms its commitment to our next generation of farmers,” Lamontagne said in a written statement.
“The investments and personalized support offered by the FIRA team are decisive for the prosperity of these companies. Supporting young people means building the future of Quebec,” he added.
The president and CEO of Desjardins Group, Guy Cormier, said he understands the “obstacles” that young people face, “from access to land to securing financing to get started.”
“This investment fund offers important leverage to meet the challenges of transferring and starting up businesses in the agricultural sector,” he said.
“We are once again showing our commitment to supporting them and giving them the means to achieve their ambitions, as well as promoting the sustainability of our agricultural heritage and the vitality of our communities.”