Canadian farmers who have difficulty securing loans through more traditional lenders may now have another option.
Farm Credit Canada this week announced a $60-million investment in Glengarry Farm Finance Corp., money that will significantly increase Glengarry’s ability to provide credit-challenged farmers with a more accessible source of financing.
Founded by a group of farm credit specialists, farmers and finance industry professionals, Glengarry is a wholly Canadian alternative lender in the agricultural market focused on providing flexible financing solutions for primary producers in Western Canada and Ontario.
Glengarry primarily works with farmers who, due to temporary credit issues, cannot secure loans through primary institutions. The company acts as a “transitional lender,” providing farmers with the financial backing they need to eventually become bankable, said an FCC release.
Darren Baccus, executive vice-president, investment, FCC Capital, said FCC is committed to supporting Canada’s agriculture and food industry - and that includes expanding capital solutions in underserved areas.
“Glengarry serves a segment of the market that complements our current capital solutions,” Baccus said. “With the right support, qualified primary producers have the potential to continue to contribute to the resiliency, diversity and innovation of Canadian agriculture despite temporary financial disruptions in their operations.”
“We understand agriculture is an unpredictable business, and many determinants of success are well beyond a farmer’s control,” added Glengarry CEO Greg Kalil. “This new partnership with FCC puts us in the unique position of being able to offer a more comprehensive set of financing solutions to give farmers the support they need to work their way back to bankability.”
