CIBC Farm Term Loan

The CIBC Farm Term Loan1 is designed to help you grow your farm business.

For example, you can use your CIBC Farm Term Loan to finance the purchase of farm machinery and equipment, improvements to farm buildings and structures, breeding livestock, marketing quotas and to restructure farm loans.

CIBC Farm Term Loan Key Benefits:

  • Provides you the opportunity to finance major purchases over a maximum period of 10 years.
  • Provides you with flexible repayment terms based on your farm operating cash flow capacity.
  • Provides you with the choice of either a fixed or floating interest rate.
  • Provides you with the choice of repayment terms to match your farm business cash flow, e.g. monthly, quarterly, semi-annually or annually.
  • Provides you with the flexibility of fixing interest rates for 1, 2, 3, 4, or 5 years.
  • CIBC Farm Credit Life Insurance2 also helps provide you and your family with protection from financial hardship if something were to happen to you.

Normally the asset being purchased or improved is given as security for that loan. The loan amount is generally set at less than 100% of the asset's market value, so you have equity in your asset and there is room for some depreciation. Repayment is based on the productive life of the asset purchased, from 1 to 10 years. Other assets are occasionally required to support the loan.

Optional Features Available:

Payment Options

  • You can select either a fixed or variable interest rate option, whichever best suits your specific financial needs. The variable interest rate option is based on CIBC's Prime Lending Rate3 , which fluctuates from time to time.
  • The fixed interest rate option allows you to firmly establish your repayment costs for the term you select.
  • Variable Interest Rate Option: You can pay the principal in monthly, quarterly, semi-annual or annual installments, depending on your cash flow. Generally, interest rates are considered an operating cost, and are paid monthly. Pre-payments can be made at any time and any amount without penalty on your variable rate Term Loan.
  • Fixed Interest Rate Option: Repayment may be arranged on a "principal plus interest" basis or on a blended "principal and interest" basis. Payments can be made monthly, quarterly, semi-annually or annually, depending on your cash flow. Unless the payment is "blended", interest costs will generally be paid monthly.

Gives You Money

To apply or get more information about CIBC Farm Loans contact a CIBC Agriculture Banking Specialist, or visit a CIBC branch.