Farm Credit Canada (FCC) is widening its Trade Disruption Customer Support Program as conflict in the Middle East raises concern about higher fertilizer and energy costs for Canadian agriculture and food businesses.
The program, first introduced to help the sector cope with trade tariff disruptions, will now also be used to support agribusinesses, farm operators and food processors facing financial pressure from unexpected market shocks tied to rising input prices, FCC said in a release Friday.
The move comes as global urea prices have already increased amid worries about possible supply disruptions from a region that plays a key role in nitrogen fertilizer exports.
“When global tensions rise, producers are often left wondering how it might affect the inputs they rely on,” Justine Hendricks, FCC president and CEO, said in a statement. “While we cannot control those events, we can ensure producers have the financial flexibility and support they need to navigate uncertainty. FCC is ready to help producers keep their operations moving forward.”
Under the expanded program, FCC said eligible existing customers and new clients who meet lending criteria may access an additional credit line of up to $500,000, apply for new term loans, or defer principal payments for up to 12 months on existing FCC loans.
FCC said it will continue working with industry partners to help keep Canadian agriculture and food businesses moving forward as market conditions shift. Producers and agribusinesses interested in the program are being encouraged to contact their local FCC office or call the agency directly to discuss their situations, with all applications subject to normal lending due diligence.
The agency’s economists have also published analysis on the potential impact of Middle East turmoil on fertilizer availability and pricing for Canadian producers. That analysis is available here:
https://www.fcc-fac.ca/en/knowledge/economics/fertilizer-availability-amid-turmoil-middle-east
