MACC Annual Report 2002/03 - Manitoba Agricultural Services ...

DIRECT LENDING PROGRAM
DIRECT LENDING PROGRAM
MACC’s Direct Lending Program provides eligible Manitoba producers with short, intermediate
and long term financing, competitive interest rates and no prepayment penalties. Clients also
have the control and flexibility of locking the interest rate for the full amortization period or by
selecting a five-year renewable interest term.
DIRECT LOANS
In 1959-1960, the first year of its inception, MACC made available Direct Loans to provide
financial assistance to Manitoba producers in establishing, developing and operating their farms.
Direct Loans are available for a variety of purposes such as the purchase of land / buildings,
permanent improvements to land/buildings, traditional or alternative breeding stock, construction
and renovation of production buildings or debt consolidation.
During 2002-2003, there were 334 loans approved totalling $18.8 million as compared to 653
loans approved totalling $45.4 million during 2001-2002. The major allocation of agricultural
lending activities in 2002-2003 went to land purchase loans of 41% and debt consolidation loans
of 27%.
APPROVED DIRECT LOANS BY PURPOSE
2002-2003
Building
Improvements
10%
Land
Improvements
2%
Land Purchases
41%
Livestock
Purchases
20%
Debt
Consolidation
27%
15
2002-2003 ANNUAL REPORT