As an agricultural business, finding the funding needed to purchase equipment and to grow your business can be a challenge. Equipment for farming, agribusiness, and food and beverage businesses is expensive, and a lack of financing can leave you unable to make the changes you need to make.
You don’t have to go it alone when you are seeking financing for your ag-related business, though. Farm Credit Canada, or FCC, has multiple loan options available that you can use. These are loans that carry advantageous terms for you, giving you the freedom you need to keep your business moving forward.
FCC offers its loan products throughout Canada, including in Ontario. Even though Ontario has a significant percentage of Canada’s population and large cities like Toronto and Ottawa, it’s also a leading province for farming. Taking advantage of FCC’s loans can be the key to growth … both in the field and in your ag business profits.
What is Farm Credit Canada?
Farm Credit Canada is a lending organization that focuses on Canadian farms and ag-related businesses. FCC operates under the federal government’s Farm Credit Canada Act and the Financial Administration Act.
FCC only provides loans to agriculture-related businesses and farms. This sets it apart from other business lenders, who may focus on multiple industries. Throughout its 60 years in operation, FCC has more than 100,000 customers. Its portfolio is greater than $47 billion.
By focusing on agriculture, Farm Credit Canada is able to fully comprehend the needs of farmers and ag-related businesses, which often makes the loan process go smoother.
FCC commits to following ESG (environmental, social, and governance) policies. FCC uses these policies to support agricultural customers and to govern the organization’s operations.
Beyond granting loans, FCC provides support for ag-related entrepreneurs through educational materials and access to experts. It is accountable to the federal government in Canada. The Minister of Agriculture and Agri-Food sets the priorities for FCC and governs its policies.
One of the most important aspects of FCC is the transparency with which it works. You can fully research FCC before seeking a loan. It’s important for FCC to be trustworthy and completely open about how it operates, or business owners may be leery of seeking funding from it.
Farm Credit Canada Programs for Ontario Businesses
You can obtain financing from FCC for a variety of situations, including:
When seeking financing for an agricultural business, you have multiple options through FCC.
In terms of agribusiness options, FCC funds entities like crop input suppliers, equipment manufacturers, equipment dealers, feed processors, wholesale businesses, distribution businesses, and grain handling businesses. You can use these funds to:
Food and Beverage
FCC provides funding for a wide range of Canadian businesses involved in the food and beverage industry, including:
How Much Can I Get from Farm Credit Canada?
Although receiving a loan from FCC may be an easier process than trying to go through a private, for-profit lender, FCC doesn’t give you unlimited funds.
The amount you can receive often will depend on what kind of down payment you can provide and what kind of collateral you have available, just like a traditional loan. And you do have to qualify based on your credit rating.
However, FCC makes the qualification process easier, even for large amounts of money. For example, when purchasing farm equipment, you could receive loans for almost any amount, including for more than $500,000.
Also, keep in mind these FCC collateral requirements:
Ultimately, the amount you can borrow from FCC depends on what you need to purchase and the amount of credit for which you can qualify.
Farm Credit Canada Eligibility
As long as you are working in an ag-related business in Canada, you are eligible to seek funding from FCC. Certain loans and programs are limited to certain qualifying people, though. Some of those include:
Farm Credit Canada Applications: How Do I Apply?
You need to contact FCC directly to apply for your loan. There is no option for applying online. You have multiple options for reaching out to FCC:
You also can visit your local FCC office. At the FCC customer service page, enter your location. The website then will show any offices within a certain distance of your location.
Ontario has more than two dozen office locations. After you search for the offices, you can see their physical addresses and operational hours listed at the bottom of the page.
Tips for Maximizing Your Farm Credit Canada Funding
As you are researching your loan options from FCC, it’s important to make sure that any money you borrow will deliver the benefits you are seeking. Here are some tips to give you the best chance at figuring out how to maximize your funding.