Farming isn’t just a job: it’s a livelihood and the cornerstone of Canada’s food supply.
Recognizing the unique challenges farmers face, Farm Credit Canada (FCC) has committed $60 million to Glengarry Farm Finance Corporation, with the goal of providing farmers with the financial flexibility needed to overcome temporary setbacks and maintain their thriving operations. .
Glengarry Farm Finance Corporation, a specialist agricultural lender, offers flexible financing solutions to farmers in Western Canada and Ontario who may not qualify for traditional bank loans. The partnership with FCC – a Crown corporation and Canada’s leading agricultural lender – aims to bridge the gap for transitioning farmers by providing them with greater access to capital.
Tara Sterken, marketing and business development manager at Glengarry, said Mortgage Trends in Canada that the cash injection involves $40 million up front, with another $20 million available and potentially more later.
This new funding will allow Glengarry to take on larger contracts and offer better pricing options better suited to farmers’ needs, including a more competitive “premium” alternative.
“What they really did for us was they provided us with effectively cheaper capital,” Sterken said. “It moves us from this type of true private lending space to a more alternative space where we’re really closer to that prime lending category.”
As a result, Glengarry can now offer rates approximately one to one and a half percentage points lower than before, helping to narrow the gap between prime rates and private commercial loans, which typically hover around a gap of 4.5 percentage points. .
For farmers, this financing offers the possibility of committing to slightly longer periods without facing prohibitive costs.
“Now it’s a little nicer, a little cheaper, and it gives them a little break,” Sterken said.
Additionally, Sterken said they are limited to deals in the $5-7 million range, whereas this financing allows Glengarry to do even larger deals.
The importance of supporting Canada’s agricultural community
For Glengarry, this partnership is not just about providing loans, but about strengthening the vital role that farmers play in Canada.
“It’s about supporting the fifth and sixth generation farmers who produce the food that feeds our families,” Sterken said. “I am constantly reminded of how lucky we are in Canada to have such incredible agricultural diversity, and it is a privilege to help maintain that diversity. »
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Last modification: November 8, 2024