CIBC Farm Term Loan

• The applicant must be operating a farm business.
• The financing must support farm business needs such as purchasing farm machinery and equipment, improving farm buildings/structures, acquiring breeding livestock, purchasing marketing quotas, or restructuring farm loans.
• The loan must be secured (normally by the asset being purchased or improved).
• The repayment term must align with the productive life of the asset being financed (from 1 to 10 years).
• Repayment must be structured based on the farm’s operating cash flow capacity (e.g., monthly, quarterly, semi-annually, or annually).

Who is eligible?

• Farm businesses (agriculture)

Eligible expenses

• Purchase of farm machinery and equipment.
• Improvements to farm buildings and structures.
• Purchase of breeding livestock.
• Purchase of marketing quotas.
• Restructuring of existing farm loans.

• Loan security is normally the asset being purchased or improved; other assets may occasionally be required as additional security.
• The loan amount is generally set at less than 100% of the asset’s market value to ensure borrower equity and allow for depreciation.
• Repayment is based on the productive life of the asset purchased, typically ranging from 1 to 10 years.
• CIBC Farm Credit Life Insurance is available to help protect against financial hardship if something were to happen to the borrower.