Farm Credit Canada is making up to $1 billion in new lending available to Canadian farmers and agribusinesses amid US tariff challenges.
Announced Friday, FCC’s Trade Disruption Customer Support program will provide relief for viable customers and non-customers who meet the necessary lending criteria. This includes access to an additional credit line up to $500,000 and new term loans. Current FCC customers will also have the option to defer principal payments for up to 12 months on existing loans, the ag lender said in a statement.
FCC said it will continue to evaluate the economic impact of tariffs implemented by Canada’s largest trading partner on the Canadian agriculture and food sector to ensure it is “best able to support the industry.”
“We know that agriculture and food producers across Canada are bracing for uncertainty,” said Justine Hendricks FCC president and CEO. “Agribusinesses, farm operations and food processors are key drivers of our economy and FCC is ready to provide meaningful and immediate support to keep the industry moving forward at this critical time.”
US President Donald Trump last week followed through on threats to levy a 25% tariff on American imports of most Canadian goods, including agricultural products. Trump later delayed the implementation of the tariffs until April, but his on-again, off-again tariff threats have sent a chill through trade. The US is by far Canada’s largest trading partner, with over C$17 billion of Canadian grain and grain products exported across the border every year.
“Tariffs of this magnitude will put family-run grain farms at risk by introducing widespread market uncertainty,” Kyle Larkin, Executive Director of Grain Growers of Canada, said in a statement last week.
The $1 billion in new FCC lending was announced alongside other federal initiatives aimed at fighting US tariffs on Friday. That includes $5 billion over two years to help exporters reach new markets for Canadian products and assist companies in navigating the economic challenges imposed by the tariffs, including losses from non-payment, currency fluctuations, lack of access to cash flows, and barriers to expansion.
Ottawa said it will also make $500 million in favourably priced loans available through the Business Development Bank of Canada to support impacted businesses in sectors directly targeted by tariffs, as well as companies in their supply chains.
Also on Friday, Ottawa announced the interest-free portion of the Advanced Payments Program has been set at $250,000 for this year.
Under the program, producers had typically received the first $100,000 interest-free, although that amount has bounced around in recent years. It was raised to $250,000 in 2022, and then further increased to $350,000 in 2023, mainly due to skyrocketing input costs. However, the interest-free portion returned to $250,000 again in 2024.
