Farm Associated Risk Management Services Corporation (ACC FARMS), a new wholly owned, subsidiary of ACC Farmers’ Financial, is set to offer Canadian farmers better value for their Canadian Agricultural Income Stabilization (CAIS) program dollars.
In association with BMO Bank of Montreal, ACC FARMS has been able to leverage low cost financing for producers who wish to borrow funds to make the maximum deposit into a CAIS program account. Making the full deposit will make them eligible for the complete payout, should it be triggered. BMO Bank of Montreal will host and manage the individual farmer CAIS program accounts.
By investing in their CAIS program account with ACC FARMS, farmers will receive the benefit of a higher deposit interest and lower borrowing rates – resulting in an annual net cost of no more than 1.25%. Farmers will get more interest on their deposits (Prime minus 1.95%) and pay less interest on their loan (Prime minus 0.70%). For example, a farmer eligible for a $50,000 CAIS account, could borrow at a net annual borrowing cost of only $625.
“The low cost borrowing also makes it an easy decision for farmers to use their Net Income Stabilization Account (NISA) funds to pay down existing higher interest debt, rather than just rolling their NISA dollars into their CAIS program account – providing farmers with a far more effective use of their NISA dollars,” states Brian Hughes, ACC FARMS President.
Kim Turnbull, Chair of ACC Farmers’ Financial, the parent company of ACC FARMS, is excited to be able to offer farmers this low cost, high value program. “I think this is a great program designed by farmers to benefit farmers. It’s going to provide them with the opportunity to get more value out of both their NISA funds and their new CAIS program accounts.”
“BMO Bank of Montreal is known as a leader in providing innovative support and financing options to the Canadian agricultural community. This new relationship will allow us to reach out yet again to make sure that farmers are able to get the most leverage out of their NISA dollars,” says Steven Murphy, Senior Vice-president, BMO Bank of Montreal.
The new program is open to all farmers across Canada with the exception of Quebec which is administering their own program. Farmers wishing to take advantage of this new program need to do so 15 calendar days before each provincial deadline date. Application forms can be obtained by calling the ACC FARMS office at 1-866-580- FARM (3276) or by visiting their website at www.accfarms.ca
For more information please contact:
Brian M. Hughes,President
Farm Associated Risk Management Services Corporation
(519) 766-0544
bhughes@accfinancial.ca
Steve Murphy
Senior Vice-President
BMO Bank of Montreal
(519) 744-2700
steve.murphy@bmo.com
Don LeDrew
Vice-President
Farm Associated Risk Management Services Corporation
(519) 766-1288
don.ledrew@accfarms.ca
