There are more than 189,000 farms in the Canada and in 2021, they generated $15.9billion.
Clearly, farming is big business, but unfortunately, it’s also very seasonal. Many farms suffer from erratic cash flow caused by patchy income and volatility in the prices they pay for supplies and the prices they achieve for their products. This can leave many farms struggling to expand, unable to cover supply costs, and late to pay mandatory obligations, such as VAT. Specialised agricultural finance has grown to plug these gaps – providing tailored long-term loans to buy land and expand production, VAT loans to keep the taxman happy, and working capital finance to meet the daily needs. Read on for an overview of agricultural loans and how they can help you grow your farm into a high-performing business.
Many farms are land rich and cash poor, with income that is volatile. Their erratic cashflow may be the result of seasonal patterns, or it could be caused by slow payment by large wholesale buyers. Either way, lack of working capital, or investment funds to expand, puts a brake on profitability and can cause permanent harm to the business. Farmers often need funding to buy more land, build infrastructure, pay for supplies, such as seed or cattle, and invest in new machinery. Fortunately, as diverse as farmer funding needs may be, there are just as many loans available, and they can cover almost all eventualities and for every type of farm.
A long-term loan used to buy a whole farm, farm buildings, or land to extend the property. Borrow up to 90% of the purchase price, with the farm or land providing security for the loan. Pay the loan back over 1 – 25 years.
Use this type of finance to pay for new construction or re-development of existing structures, such as silos, grain sheds, feed stores, cattle shelters, chicken sheds, barns and crop storage sheds.
A form of lease that can pay for new plant and machinery. Use the purchased item while you pay for it. The asset acts as security for the loan.
Short-term borrowing to plug the dips in cashflow. Suitable for almost any day-to-day expense. Pay for supplies and services, distribution costs, maintenance expenditures and more. May be obtained with or without security.
Farms may need more than one type of financing to cover their immediate, mid-term and long-term needs. Trying to organise different agricultural loans from different lenders can be slow and disappointing. Working with a broker, who can access many types of financing from a wide range of lenders, can solve this dilemma. No more searching or completing endless applications. Simply indicate your funding needs, tell us what you wish to accomplish, and leave the rest to us.
You reap what you sow. Get the best rate, the best terms and the right agricultural loan for your farm. Contact Swoop today.
Swoop was amazing! I was looking for refinancing and they were straight onto finding me the best possible option. I would highly recommend them.
Laree Smith
Owner, F45 Cambridge
Written by
Chris is a freelance copywriter and content creator. He has been active in the marketing, advertising, and publishing industries for more than twenty-five years. Writing for Barclays Bank, Metro Bank, Wells Fargo, ABN Amro, Quidco, insurers and pension funds, his words have appeared online and in print to inform, entertain and explain the complex world of consumer and business finance.
We use necessary cookies to make our site work. You can change your cookie settings in Cookie Preferences
closeOur use of cookies
We use necessary cookies to make our site work. We'd also like to set optional third-party cookies to help us improve the experience. Using this website will set a cookie on your device to remember your preferences.
For more detailed information, please see our Cookie Policy
Necessary Cookies
These are cookies that are set by Swoop necessary for our website to function.
Third Party Cookies
These are services that are set by Third party companies in order to help us to understand and improve our website, remember preferences and to display advertising.
Necessary Cookies
We require some cookies for the operation of our website, which do not gather information about you that could be used for marketing or remembering where you have been on the internet.
For more detailed information visit our Cookie Policy
Third Party Cookies
These cookies help us to improve our website by collecting and reporting information on how you use it. The cookies collect information in a way that does not directly identify anyone.
For more detailed information visit our Cookie Policy
Receive relevant industry updates, news, partner offers and more when you sign up.
We work with world class partners to help us support businesses with finance
London 18 Soho Square, W1D 3QH, London, UK
Liverpool, Suite 42, 4th Floor, Oriel Chambers, 14 Water Street, Liverpool, L2 8TD
Birmingham, Suite 109, Somerset House, 37 Temple Street, Birmingham, B2 5DP
Aberystwyth, Aberystwyth Innovation and Enterprise Campus
Gogerddan Campus
Aberystwyth University
Ceredigion
SY23 3EE
Dublin Dogpatch Labs, The CHQ Building, Custom House Quay, Dublin, Ireland
Sydney Level 2/477 Pitt Street, Sydney NSW 2000, Australia
Toronto 180 John St, Toronto, ON M5T 1X5, Canada
New York 10154, United States
Sign up to our Swoop news
Receive relevant industry updates, news, partner offers and more when you sign up.