BMO Offers Farmers Easier Access to Credit

• Announcing a new product specific to farmers, the Agri ReadiLine
• Only one loan approval needed, which avoids the hassle of reapplying for loans to cover additional purchases throughout the year
• Funds are always accessible, whether it be for ongoing operation costs, quota or livestock purchases, expansions or renovations, even the purchase of land

TORONTO, March 31, 2009 – BMO Bank of Montreal announced today a new lending product called Agri ReadiLine which provides farmers with ready-access to funds without the need to reapply for loans throughout the year.

“At this time of year farmers are getting ready for the growing season. They are looking at funding alternatives that best suit their needs now and in the future,” said David Rinneard, National Manager, Agriculture, BMO, Bank of Montreal. “We are making financing easier to obtain and manage for both new and existing customers. Whether it’s for the ongoing operation of your farm, purchase of equipment or quota, barn expansions or the purchase of land our new Agri ReadiLine product is a complete lending solution.”

With changing market conditions, now is a great time to visit local BMO agriculture experts about agri-business needs, not just lending requirements, but advice on all aspects of running an agri-business.

“In 2009, the Canadian agricultural sector should sustain output growth throughout the year due to good demand and price prospects, along with productivity gains,” said Kenrick Jordan, Senior Economist, BMO.

Tips for this spring season for farmers on how to cultivate their business:

1. Re-visit business plan

• Detail both short-term and long-term goals, taking into account as many factors as possible
• Remove items in your business plan that no longer apply
• Ensure a contingency plan is part of the big picture

2. Create an Advisory Board

• Having knowledgeable experts with experience in a specific agricultural industry can prove a valuable resource for improving the operation.
• By including a BMO Bank of Montreal agricultural expert on their Board, farmers can benefit from:
  o Specific industry financing expertise;
  o Advice to help them define the long-term strategic direction of their operation;
  o Suggestions on how the farm can reach its greatest earning potential

3. Take advantage of offers specific to farmers

• BMO’s Agri Readiline - provides ready-access funds without the need to reapply
• Farm Equipment Line of Credit - specifically for buying new and used farm equipment
• Farm Mortgages - BMO offers flexible payment options, terms and fixed rates
• Farm Improvement and Marketing Cooperatives Loans Act (FIMCLA)- a government program which allows farmers to finance many capital assets at competitive interest rates

A History of Supporting the Agriculture Sector

BMO has a long and proud history of serving the Canadian Agriculture sector. BMO has demonstrated its commitment through extensive relief program offerings to help ensure customers persevered through events that impacted the industry including Canada’s BSE crisis and regional drought and floods.

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