REGINA – Farm Credit Canada has boosted crop-input loan limits and has launched a new two-year credit line to help farmers’ with whopping cost increases as planting season approaches.
“We want to ensure producers and food processors have sufficient capital to bridge any cash flow gaps during this time of multiple input cost increases,” FCC President and CEO Michael Hoffort said in an April 14 press release. “In practical terms, this could mean being able to replenish the fuel tanks before heading out to the field or having the cash flow to hire additional employees to keep the processing plant running at capacity.”
“We want to ensure our customers have the working capital to buy whatever inputs they need — when they need them — to keep their day-to-day operations running smoothly,” he added.
FCC is offering credit limit increases to customers who meet specific pre-approval criteria, ensuring they have access to needed capital for the upcoming growing season.
The federal Crown corporation is also offering a two-year credit line of up to $500,000 for qualified customers, for added financial flexibility.
FCC says it will continue to consider other options, such as debt re-structuring, to support customers in financial difficulty.
“FCC is committed to the success of the Canadian agriculture and food industry,” Hoffort said. “We recognize this may be both a challenging and critical time for producers, agribusinesses and processors. By helping our customers throughout every business cycle, we help strengthen the industry and position it for long-term success.”
Producers and food processors interested in setting up or increasing their credit line are encouraged to contact their local FCC office or Customer Service Centre at 1-888-332-3301.
FCC’s move to make more credit available to farmers this season follows a recent easing of access to all credit available through Agriculture and Agri-food Canada’s Advance Payments Program.