Quebec farmers offered $100 million in loan guarantees

Farmer Myriam Landry checks on her animals at her goat farm, Tuesday, May 2, 2023 in Saint Esprit, Que.THE CANADIAN PRESS/Ryan Remiorz

Quebec is announcing help for hard-pressed farmers: a working capital loan guarantee of up to $50,000.

The support could eventually total $100 million.

In just a few weeks, the number of farm businesses in difficulty has risen from 712 to over 1,100 in Quebec.

That's according to Agriculture Minister André Lamontagne, who on Thursday announced the $100 million envelop to help producers who have fallen on hard times.

On April 27, the minister had stated in parliamentary committee that 712 companies were facing serious financial problems.

At a press conference on Thursday, he said that "potentially 1,100 companies would raise their hands" to benefit from this assistance "as we speak."

"We've done a lot of analysis of the numbers," Lamontagne said to explain such an increase in the number of companies that are applying.

It's the inflation, rising interest rates, fuel costs and all the inputs that are ultimately strangling agricultural producers, he said.

The loan guarantee farmers will be able to benefit from is offered without repayment of principal and interest for the first three years. Repayment can be spread over 10 years.

- This report by The Canadian Press was first published in French on May 11, 2023