BMO Financial Group
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BMO Financial Group
BMO Bank of Montreal

BMO Bank of Montreal

November 25, 2010 07:00 ET

Deadline Approaches for Canadian Farmers to Leverage Benefits of the AgriInvest Program

- Program helps farmers mitigate risk and manage cash flow

- BMO AgriInvest Account allows farmers to increase their savings through market-leading rate

TORONTO, ONTARIO--(Marketwire - Nov. 25, 2010) - The year-end deadline is quickly approaching for Canadian farmers to take advantage of AgriInvest, a program designed to help farmers, – many of whom have weathered a challenging year – improve productivity and overall business investment.

Under this program farmers can make a deposit into an AgriInvest account and be eligible for a matching government contribution of up to $22,500. The matching government funds, available annually, are based on 1.5% of the farmer's allowable net sales (ANS). Farmers have until December 31 to file for their 2009 government contribution. 

Today, BMO Bank of Montreal reminds farmers that there is still time to take advantage of the opportunity to increase their savings through BMO's AgriInvest Account, which offers a market-leading interest rate of 1.20 per cent.

"An AgriInvest account with BMO is one of the simplest tools Canadian farmers can use to prepare for the ups and downs that their businesses experience," said David Rinneard, National Manager, Agriculture, BMO Bank of Montreal. "BMO has the highest interest rate in the market. This allows farmers to build savings more quickly putting them in a better position to weather cyclical pressures on future margins and future cash flows," added Rinneard.

About BMO AgriInvest Accounts

BMO AgriInvest customers benefit from:

  • Premium interest rate savings account - premium rates on the entire balance
  • Expert financial advice and support
  • No monthly fee plan – includes five transactions
  • Unlimited free transfers to and from any existing business accounts

Each year, farmers who file a tax return can make a deposit into their AgriInvest account based on their allowable net sales (ANS).

Allowable net sales are equal to total sales of eligible commodities minus total purchases of eligible commodities.

Sample calculation

2009 Sales of Allowable Commodities:   $2,500,000
2009 Less Purchases of Allowable Commodities:   $1,000,000
     
2009 Allowable Net Sales $ 1.5% X $1,500,000
2009 Matchable Deposit $   $22,500

* More information on the AgriInvest program can be found at: www.agr.gc.ca/agriinvest.

About BMO Bank of Montreal

BMO's roots in the Canadian agricultural sector date back to 1817, when it first began working with farmers. Today, BMO enjoys a well-founded reputation for providing customized loan and deposit solutions to Canada's agri-business owners, the single largest core commercial sector that the bank serves. 

In addition to AgriInvest, BMO Bank of Montreal offers programs and products including a specialized farm-equipment line of credit, flexible farm mortgages, BMO's Agri ReadiLine and loans under the Canadian Agricultural Loans Act. 

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