Help Us Help Your Clients: The Key to Faster, Smarter Alternative Farm Lending Decisions
At Farm Lending Canada, one of our most impactful services is providing alternative lending solutions to farmers across the country (excluding Quebec) who find themselves in challenging financial positions. We’ve seen firsthand how transformative these loans can be. But we’ve also seen how incomplete or unclear application information can delay — or even derail — that transformation.
We understand that by the time a farm reaches out to us, they’re often under pressure. Maybe they’ve been turned down by traditional lenders. Maybe rising interest rates, input costs, or an unpredictable harvest season have tightened their margins. Whatever the reason, they’re looking for help — and we’re here to provide it.
But to do that effectively, we need to understand the full story.
Why We Ask for So Much Information
It can feel like we’re asking for a lot: corporate structure, historical financials, a full net worth statement, detailed land descriptions, outstanding mortgages, ownership details, appraisals, and whether the land is already pledged as security. But each piece serves a critical purpose.
We’re not just evaluating a loan application — we’re assessing a pathway back to conventional lending. Our goal is not to provide a band-aid solution. It’s to set farmers up with the capital they need now, in a way that helps them get healthy enough financially to requalify for bank financing later.
To do that, we need a clear picture of three things:
- Where the farm business is today
- What caused the need for alternative lending
- Whether we can help build a road back to stability
The Most Common Challenge: Missing or Incomplete Information
Too often, applications arrive missing key documents or with vague descriptions. A few examples we see regularly:
- Land ownership that isn’t clearly outlined — making it hard to determine if security is available.
- Mortgages that are referenced, but without clear outstanding balances or terms.
- Corporate structures that are unclear, especially in multi-generational or partnership operations.
- Appraisals that are outdated or not provided at all.
- Incomplete financial statements.
This slows everything down. And when farmers are facing tight deadlines — whether it’s input financing for spring seeding, harvest equipment repairs, or pressure from existing creditors — time is something we can’t afford to waste.
Help Us Help You (and Your Clients)
Whether you’re a broker, farm advisor, or a conventional lender yourself, here’s what we need up front to assess an application efficiently:
- A brief history of the farm: How many generations? Key milestones. A recent history of the farm and how the farmer got to needing alternative lending.
- Corporate Structure: Who owns the farm, how is it structured (e.g., corporation, partnership, sole proprietorship)?
- Historical Financials: At least 2–3 years of statements, so we can identify patterns and assess sustainability.
- Net Worth: Assets vs liabilities, including equipment, livestock, and land.
- Land Descriptions: Legal land descriptions, acreage, title ownership — clarity is key here.
- Outstanding Mortgages: Who holds them, what are the terms, how much is owing?
- Land Value: Recent appraisals if available, or at minimum, estimated market values.
- Security Details: Is the land already pledged as collateral for another loan?
When we get a complete package, we can often move quickly to approval and funding — especially when we see a credible plan to stabilize or grow the farm’s finances.
Our Role Is Long-Term
Alternative lending isn’t a last stop — it’s a bridge. Our job is to evaluate not just whether we can lend today, but whether we’re confident the operation can recover and grow in the years ahead. When we have the full story, we’re better equipped to be the partner farmers need — not just for a quick fix, but for a sustainable future.
If you’re a broker, farm advisor, or a lender working with a client in need of financing, or if you’re a farmer yourself unsure of where to turn, reach out to us. Let’s talk about how we can help — and how providing the full picture up front can make all the difference.