Citing a strong industry, but a shrinking demographic, BMO Bank of Montreal has introduced its new loan program for Canadian farmers 35 years or younger.
The BMO Young Farmer program offers is aimed at helping both the person who’s already in the industry and for those who are choosing to get into agriculture, with loans of up to $1,000,000.
Adam Vervoort, head of agriculture financing with BMO, says they’ve been keeping close tabs on the sector and have seen it shift to the younger generation, spurring the need for such lending products.
“Canada is a leader in the agriculture industry, with revenue of $61 billion in 2017. With external pressures like weather changes and trade having an impact, we need to do more to ensure that this sector stays competitive for both established farmers and the next generation,” Vervoort says in the news release.
The new program has eligibility for all products available to farm operations, including Agri Readiline and Farm Equipment Readiline, and higher advance rates of any asset types eligible under the Canadian Agricultural Loans Act Program, for farmers with six or fewer years of experience.
The program also helps young farmers keep more money in their pockets by eliminating annual review fees, the company says.