Three years of planning has culminated in Dutch financial services firm Rabobank working directly with Canadian farmers.
With more than 25 years experience in Canada, Rabobank felt the time was right to begin working directly with farmers.
“The number of young farmers is actually growing and the country is on track to become the world’s second-largest food and agricultural products exporter,” Paul Beiboer, Rabobank North America CEO said in a statement announcing the expansion. “It’s an attractive and logical market for Rabobank to offer a full suite of financing options to existing corporate clients, as well as Canadian farmers and ranchers.”
The bank said all national and provincial regulatory compliance and licensing requirements have been met, permitting it to begin offering revolving lines of credit, real estate and equipment financing and risk management products to farmers.
Previously, its closest connection to farmers was through its partnership with Richardson International Ltd., providing vendor finance to more than 12,000 farmers across Western Canada.
Rabobank was not immediately able to provide a breakdown of its business by province.
However, the new venture will open it to working with farmers growing a range of products across Canada. To date, its primary business has been with agrifood companies and suppliers, including subsidiaries of Rabobank clients in the Netherlands.
According to the federal Office of the Superintendent of Financial Institutions, Rabobank Canada reported revenue of $164.2 million in the 12 months ended September.
The largest farm lender in Canada is Farm Credit Canada, with $47 billion in loans as of September 30, and annual revenue of approximately $1.4 billion.