Farmers focus on getting a loan approved, but bank clauses can create unexpected financial risks. Demand Loan, Right of Offset, Cross Default, and Acceleration Clauses can drastically change your borrowing relationship with your bank. Overlooking covenants and permitted liens could also lead to unexpected consequences. Before signing, you need to know what all this means.

Equipment loans and leases are a leading cause of financial strain for farmers. The issue is that large, fixed payments often don’t match the unpredictable, seasonal cash flow of farming operations. After four years of helping clients manage these challenges you can read about Glengarry’s proven strategies.

Many farmers ignore the early warning signs of financial trouble and only realize the severity of the issue when a major event occurs. The early signs of financial stress are the lack of a financial cushion and marketing produce in unfavourable market conditions.

The Advance Payments Program (Cash Advance) offers the lowest-cost operating capital available to farmers. The first $250,000 is at 0.0% interest, and an additional $750,000 is available at Prime minus 0.5%. However, the program can cause a lot of problems for farmers if they don’t pay off balances in full by the due date.

What your account manager doesn’t want to tell you could seriously affect your financial future. Banks have a tendency to promise more than they can deliver, which can be a big problem for farmers who are counting on financing that never comes through.

Alternative or non-bank lending now funds about 30% of all residential mortgages in Canada, yet many farmers have never heard of it. Alternative Lenders have proven to be very competitive in several focused market segments underserved by traditional lenders. Learn more about the fastest-growing segment of Canadian finance and why it's not well known in agriculture.

Farmers often unknowingly sabotage their credit scores, which costs them higher interest rates, and sometimes results in a loan being declined. A credit score measures a borrower's likelihood of missing a payment within the next six months. Find out why the bank considers this a critical factor in approving your loan.

Many farmers find themselves struggling to qualify for new financing because their DSCR is too low to qualify. 

Farmland value cycles are definitively different from other real estate classes for several reasons.

Cycles are a fact of life in the agricultural commodities business.

Perhaps counterintuitively, at Glengarry, a successful relationship is defined when the borrowing relationship comes to an end.

Site visits give our clients the opportunity to show us around their farms, meet our team members, and speak face-to-face.

As a farmer, you probably think about this question regularly. Determining the value of a farm is complex and best left to the experts.

It’s important for us to align with brokers, lenders, and other industry professionals who share our vision.