Existing Loan Products

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1 Existing Products In addition to the following financial institutions loan products; there are also other programs and debt products specific to cattle producers: Advance Program Offered by participating producer ganization Product Agriculture Canada - Advance Program Calf Crop, Hogs and variety of crops A production cycle (Due end of Sept) Max 18 months First $100,000 interest free. Remainder at Prime + 3 When Commodities sold Amount Maximum of $400,000 - Must Participate in AgriStability to be eligible f the program. - May need a priity agreement signed by the bank - F cattle advance, will advance different s depending on the weight of calves at sale time. Advance s of: lbs - $ lbs - $ lbs+ - $550 Breeder Co-op loans Offered by Breeder Co-ops and private companies Product Breeder Co-op s Cows and Bred Heifers -5 year contract - Finance up to 85% Varies When calves are sold. Amount Max $150,000, with possible increases with approval - All animals must be branded - Mandaty insurance required - Legal cap remains at $1,200 f bred heifers and $1,100 f youthful cows - Can finance own cows, just need a certified brand inspection

2 The following summary of loan products f each institution is a summary of their agriculture specific loan products. This infmation was found on their company website. F me details on an institution s loan products, see the accompanying link under each summary table. Royal Bank Product Summaries Product RoyFarm Multiple Mtgage Option Operating Farm Improvement and Marketing Cooperatives s Act (FIMCLA) Can finance: land, equipment, buildings, quota, debt restructuring, amtization of purchases over useful life. Ideal f funding long-term assets f business growth (new/used capital assets, dent restructure. Government program to finance farm improvements, fund processing, distribution and marketing of farm products. 15 years f land, 10 years f other purchases - Prime+1% max on variable - Residential Mtgage +1% max on fixed annually Monthly required Flexible (monthly, etc.) Amount -Fixed rate = $25,000 minimum -Variable rate = $5,000 minimum -Up to 80% of asset cost up to $250,000 f individual farmers. -Farm owned co-op up to $3million. - Eligible land, assets, debt restructure must be designated agricultural. - Application fees may apply. - Fixed loan = eligible f 10% prepayment privilege at no charge. - Variable loan = can be converted to fixed rate if interest rates rise. - Make up to 10% prepayments without penalty. - Must be farming a farming activity on a full/part time basis. - Not a start-up loan. - Government registration fee. - asset trade-ins can be used f 20% down payment. Power to Operate (PTO) Fixed Royal Business Operating Line Visa Creditline f Small Business F purchase of new used farm equipment, breeding stock. Helps to supplement day-today cash flow needs. Help pay f purchases and manage expenses. 1 to 5 years Fixed. Weekly to annually Up to $1,000,000 - Make up to 10% prepayments without penalty. - Life insurance coverage unlimited Monthly $5,000 minimum - Monthly account fee of $15. unlimited Prime + 1% to 6%. Monthly Up to $50,000 - Monthly account fee of $15. - redit card benefit options

3 TD Bank Product Long Farm (Farm Mtgage ) Agriculture Operating Line Only Medium to long term loans to finance capital assest of improve economic viability of an existing operation. - farm land, equipment, buildings, quota, capital restructuring. Allows producers to brow money when they need it at competitive interest rates. Can be used to finance farm purchases and to deal with seasonal fluctuation in cash flow. Finance equipment with interest only loan. Producer can make interest only payments f up to 12 months. -Variable and fixed rates available compounded semi -6 months to 5 10 year term available upon request but restrictions may apply. $25,000 and up -10% prepayment permitted on fixed rate loans. -Amtization periods up to 25 years available f land purchases and 15 years f equipment. $10,000 and up -Security will vary depending on loan and risk level. -Pay interest only on browed. $10,000 to $500,000 amtized over the estimated useful life of equipment up to 10

4 Farm Improvement Federal government guaranteed loan program f farm real estate, livestock, equipment and building purchase, crop stage and debt consolidation. -80% of purchase price can be financed. -Max $250,000 per individual farmer $3,000,000 per farm cooperative. Asset financed used as security. Rural Property Mtgage US Dollar Agriculture Operating Line Dairy Designed f individuals wishing to purchase and/ improve primary residence greater than 5 acres on agriculture zoned land. Allows producers to brow money when they need it at competitive interest rates. Can be used to finance farm purchases and to deal with seasonal fluctuation in cash flow in Us currency. Allows dairy producers to finance expansion acquisition of farmland, buildings, acquire quota restructure debt. 6 months to 5 Up to 15 -Variable and fixed rates available compounded semiannually on fixed rate. -6 months to 5 offered in 6 month to 5 years terms. Bi-weekly and monthly $75,000 and up -Available to customers whose main income is off-farm. -10% prepayment permitted on fixe rate loans. - Amtization periods up to 25 years available $10,000 and up Can be used with TD Farm Feign Exchange Services which helps mitigate currency risk when buying/selling in US dollars. $25,000 and up 10% prepayment is permitted annually on fixed rate loans. ( ed Troy to confirm use of this link, Feb. 3, 2009)

5 CIBC Product CIBC Farm Operating Farm Farm Mtgage CIBC Farm Improvement Help to cover day to day farm expenses including, cattle, seed, fertilizer and feed purchases, machinery and building repairs, rent etc. Helps to grow farm business allowing f the purchase of equipment, machinery, farm building improvements, quotas and farm debt restructuring. Helps to purchase land and buildings, complete building renovations and restructure farm loans. Can be used to finance farm equipment and building installation improvements, purchase additional farmland, breeding stock, etc. Maximum 10 Up to 20 years Maximum 15 years f farmland purchase and 10 years f other purchases -Variable fixed rate. - Can fix rates f 1 to 5 years during term. -Variable fixed rate. -Fixed rate option from 1 to 10 -Calculated semi - semi-annually -Can be suited to match farm cash flows. semi-annually Minimum $25,000 -Variable Option: Pre-payments can be made at any time without penalty. -Fixed Option: Repayment can be arranged as principal plus interest blended principal and interest. -Unless blended, interest payments will be paid monthly. -Prepay option allowed at any time on a variable rate. -Prepay of up to 10% of the iginal principal on a fixed rate loan on any anniversary date. -Variable Option: Pre-payments can be made at any time without penalty. -Fixed Option: Repayment can be arranged as principal plus interest blended principal and interest. -Unless blended, interest payments will be paid monthly. Maximum $250,000 -Provided under federal governments Farm Improvement and Marketing Cooperatives s Act -Variable Option: Pre-payments can be made at any time without penalty. -Fixed Option: Repayment can be arranged as principal plus interest blended

6 improvements. principal and interest. -Unless blended, interest payments will be paid monthly. ATB Financial Product Sht and Medium s Long s Revolving Operating To assist operation with purchases: breeding stock, machinery and equipment, farmland, stage facilities. Eligible f building construction improvement, farmland and other long term capital asset purchase. F any day-to-day purchases up to a preapproved maximum. Life of the asset up to 10 years Life of the asset up to 25 years - Variable Fixed. - can be fixed up to 10 semiannually semiannually semiannually Available prepayment options. Available prepayment options. Specific Operating Cost Cutter Crop Input Government Guaranteed s Designated f purchase of a specific inventy. To purchases crop inputs and repay loan when income from crops are realized. Can be used to finance farm equipment and building installation improvements, purchase additional farmland, breeding stock, etc. 1 year Up to 18 months Amtization can be extended up to 15 -Variable Fixed. - Based on 1 year term with payments stretched to 18 months. semiannually semiannually semiannually Financing under the Alberta Farm Development (ADFL) program.

7 Equity Agri-Plan Flexible line of credit f day-to-day purchases and capital asset purchases. 4-H Program Suppt f 4-H members by assisting with purchases of marketable livestock. s as low as prime. semiannually semiannually - ann. Preapproval up to $1 million Up to $5,000 Co-signature of guardian parent required. No fees. Scotia Bank Product Scotia Flex f Agriculture Scotia Farm Scotia Farm Mtgage Scotia Farm Operating and Credit Line Farm Improvement The Scotia Flex f Agriculture banking program allows a producer to customize farm credit needs with multiple credit products under one global credit limit. Purchase of new and used assets including breeding stock, machinery and equipment, building repairs and renovations. Owning farm land can be a big step towards financial security and prosperity. A mtgage loan provides flexible long-term financing f full and part-time farmers to buy farmland, make maj capital improvements, to restructure existing loans. Gives resources to meet operating credit needs. Flexible term financing f machinery, equipment, buildings, land. Variable fixed. Can fix rates at any time. Up to 80% if current market value of real estate. Umbrella program that molds all available Scotiabank loan products below into one package with the potential to save money each year. Flexible repayment terms to accommodate improve cash flow. terms can match seasonal cash flow. terms can match seasonal cash flow. Limits based on security provided and operating requirements. Prepayment privileges and options. No pre-payment penalties in variable rate loans. Scotia Farm Legacy Targeted f farmers - Pre-payment privilege up to 15% of iginal

8 Mtgage transferring farm operation to next generation. balance. - Minimum 10% down payment. - only payments permitted up to 5 Bank of Montreal Product Farm Mtgage Farm Improvement and Marketing Cooperatives s Act (FIMCLA) Farm Equipment Line of Credit F farmland purchase improving existing operations, reganizing debt. Farming assets that qualify under this government program include implements, buildings, additional land, breeding livestock, repairs to buildings and equipment, land improvements, and debt consolidation. Pre-approved line of credit separate from general operating line. Up to 25 years 15 years f land, 10 years f other purchases. semiannually Generally made monthly but can be extended to yearly. Pre-payment option up to 10%. Government administration fees.

9 AFSC Product Alberta Farm Program Alberta Disaster Assistance Program Primary agriculture producers can use the loan to purchase equipment, land, machinery, breeding livestock, production quota, and shares in a farming company. Permanent improvements to land, complete repairs, and renovate construct buildings, including livestock facilities, barns, and housing. s can also be used to assist with financial restructuring and resting wking capital. Helps Alberta producers reste the wking capital needed to maintain their farming operations after an agricultural disaster. Shtterm emergency response that covers all segments of the agriculture industry. Maximum 20 Fixed at 5% f up to 10 Up to $2 million -s can be paid out at any time without penalty. -Beginning Farmer Incentive (BFI): rate reduction of 1.5% f the first 5 - Qualifying individuals are those with a net wth under $500,000. Up to $1 million -Eligible in situations where: -Crop yields are less than 70% of nmal, - Severe loss of revenues occur beyond nmal commodity cycles, and -A net margin decline beyond 30% of established reference margin determined by Agristability -s can be paid out at any time without penalty

10 Value Added & Agribusiness Program (VAAP) can be used to start, expand, purchase, upgrade facilities, equipment, other capital assets. Covers wking capital expenditures, including training costs to suppt new expanded operations products f value added agribusiness enterprises and change of ownership. Maximum 20 Up to $2 million *Value Added Defined as an activity that changes, alters modifies a product that adds value to the product through a business manufacturing process. Enterprises that are retail service industries are not considered Value Added. **Agribusiness Defined as an enterprise involved in an Agricultural Industry. Farm Credit Canada Product Grow A producer can make interest only payments to manage your cash flow until a return on investment is realized. Accelerat F producers looking sell and established producers looking to expand. Advancer AdvancerPlus Capacity Builder A pre-approved, secured loan that continually readvances funds as an operation grows. Can be used to purchase land, buildings, livestock and other personal property. A pre-approved revolving loan that provides money f wking capital. A pre-approved loan that is available f up to 18 months. Producer can take out funds whenever they are needed in time period. only up to 5 Open variable rate. Open variable rate. Variable rate. Secured with real personal property. - Secured with real personal property. - Buyer may not need capital f down payment. - No risk to seller as FCC guarantees loan. - Principal payments made at producer discretion. - Secured with real property mtgage. - Ability available to convert entire loan balance, to a term loan with a fixed repayment schedule. - only payments - Secured by real estate, quota a General Security Agreement - Secured with real personal property.

11 Cash Flow Optimizer Personal Property Construction Enviro- First Step Mtgage s Flexi- Payday Perfmer A producer can make interest only payments and pay down principal at most convenient time. Can be used to purchase land, buildings, livestock other personal property. Uses the purchase (equipment, livestock, quota) as security f the loan. Provides financing f construction projects that will be complete within 18 months. Pre-approved credit f financing any environmentrelated project upgrade such as methane digesters, manure stage handling facilities develop buffer zones between crops and waterways. F young farmers with limited credit experience. With a business plan, young producer can purchase first farm asset. Can be used to purchase land construct additional buildings. Allows producer to deal with market realities and pause principal ption of payments. Can use employment income histy and good credit histy to get a low down payment and fast approval. A loan that rewards perfmance and goal achievement by lowering interest rates. Up to 10 Variable rates. Variable rates. Variable (Open/Closed) Fixed (Open/ Closed) Monthly payments that match off-farm earnings. Up to $75,000 - Only interest payments are required f life of loan. - Variable: prepay any at any time, lock in rate at any time. - Fixed: get best fixed rate and reduce loan risk. - Principal payments required once construction complete. - can be converted to an FCC fixed rate product at the end of construction. - Principal payments required once construction complete. - can be converted to an FCC fixed rate product at the end of construction. - Secured with real personal property. - Secured with real personal property being purchased. - Down payment as low as 10%. - Up to 10% prepayment privilege depending on rate plan chosen. - Can register a mtgage greater than purchase needs. - Each principal pause can last up to 12 months. - A minimum of one year principal payments must be made befe first pause. - Secured with real personal property. - Down payment as low as 10%. - Secured with real personal property. - Secured with real personal property. - Goals based on specific business requirements.

12 Spring Break Start Now Pay Later Transition s Designed f festry operations who reduce harvest operations during spring road bans. Used to finance festry equipment. Defer loan payments until return on investment realized. Can be used f new business ventures expansions. Helps buyer and seller of farm agribusiness in transitioning from one owner to the next Can brow against value of equipment. - schedule designed around harvest season, 8 to 10 months a year. - Maximum deferral up to 3 years after disbursement followed by 2 years of interest only payments. - Secured with real property. - Secured with real personal property. - Buyer requires 10% down f purchase. - FCC guarantees 100% of funds to seller. Laurentian Bank of Canada Product Farm Improvement and Marketing Cooperatives s Act (FIMCLA) Financier agricole du Quebec (FADQ) Farming assets that qualify under this government program include implements, buildings, additional land, breeding livestock, repairs to buildings and equipment, land improvements, and debt consolidation. Acquisition of expansion projects 15 years f land, 10 years f other purchases. Max of 30 years Generally made monthly but can be extended to yearly. Max $250,000 Government administration fees. Variable Varies Max $5 Million F business in which farmers hold at least 60% interest Expansion projects, equipment refinance existing debt Generally 1 5 years Max 7 years, but must not exceed useful like of the asset Fixed variable rates Generally monthly, which may include principle and interest separately both Customizable

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