In response to new tariffs imposed by the United States, Farm Credit Canada (FCC) has announced a significant financial initiative aimed at bolstering the Canadian agriculture and food industry.
The organization is providing $1 billion in new lending to help mitigate the financial strain on producers facing uncertain economic conditions, according to a press release.
“The relationship between Canada and the United States is unparalleled, especially within our agricultural sectors,” says the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food. He emphasizes the critical need for fair market access, noting that the tariffs will negatively affect integrated supply chains and Canadian producers. “Advancing our Team Canada response, FCC’s financial support will enable farmers to maintain operations and continue delivering top-quality products globally.”
Justine Hendricks, FCC president and CEO, acknowledges the precarious situation facing agriculture and food producers. “As agribusinesses, farm operations, and food processors are vital to Canada’s economy, FCC stands ready to deliver immediate and meaningful support to navigate these challenges,” she says
To provide swift assistance, FCC plans to implement solutions that address cash flow issues, allowing businesses to adjust to shifting trade and economic landscapes. The new Trade Disruption Customer Support program is targeted at offering relief to both existing customers and those yet to engage with FCC, contingent on meeting specific lending criteria. This program includes credit lines up to $500,000 and new term loans, while current customers will have the option to defer principal payments on existing loans for up to 12 months.
“Industry collaboration is crucial during this time,” Hendricks says. “For over 65 years, FCC has been a trusted partner within the sector, and we will coordinate with industry associations and financial providers to develop solutions needed for the agriculture and food industry as they confront current challenges.”
J.P. Gervais, FCC chief economist, comments on the importance of maintaining a healthy trade relationship with the U.S., saying, “Canadian agriculture and food companies are recognized for delivering high-value products to American consumers, and sustaining this relationship benefits both nations. Despite the hurdles presented by these tariffs, FCC remains committed to providing capital solutions that foster Canada’s leadership in agriculture and food production.”
As the economic ramifications of the tariffs unfold, FCC continues to assess their impact on Canada’s agriculture and food sector to ensure effective support for the industry moving forward.
Producers and agribusiness owners are encouraged to reach out to their local FCC office or call 1-800-387-3232 to discuss personalized lending options and strategies for navigating these unprecedented challenges.
