Lending institutions team up to boost innovation in agriculture

Farm Lending Canada (FLC) and Farm Credit Canada (FCC) are partnering to expand access to financing for Canadian farmers.

The investment is part of FCC’s recently announced commitment to use $2 billion to enhance innovation in Canadian agriculture and food by 2030.

As a financial services provider, FLC aims to find solutions that address the need for alternative funding sources that support stability, transition, and succession for Canadian farming families.

“The changing global landscape has put a great deal of stress on the men and women who put food on our tables,” said Robb Nelson, chief executive officer of FLC in a news release.

“With this capital, we will now be able to expand our existing loan portfolio and increase our ability to help Canadian farmers,” he said.

Since 2019, FLC has provided financing to Canadian farming operations in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island and Saskatchewan that may not have access to traditional lending options.

According to the release, it has helped over 100 Canadian farming families, with an average loan size of more than $2 million.

To strengthen borrower’s financial position and transition them back to conventional financing, FLC provides guidance to manage debt levels and optimize their businesses.

“Partnerships like this help more producers get access to the capital they need to transition their operations, and reflect the importance of working together to support the people building the agriculture and food sector,” said Adam Smalley, managing director, FCC Capital.

The release said FLC is focused on raising an additional $200 million in capital over the next 18 months to support Canadian farmers.

More information is at www.farmlending.ca.