BMO Bank of Montreal
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BMO Bank of Montreal

December 08, 2011 09:00 ET

Deadline Approaches for Canadian Farmers to Participate In 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 - Dec. 8, 2011) - 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 per cent of the farmer's allowable net sales (ANS). Farmers have until December 31 to file for their 2010 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 1.2 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 Karl Mclaren, Manager, Agriculture, BMO Bank of Montreal. "BMO's market leading interest rate allows farmers to build savings more quickly. These savings can be used in future years to weather cyclical pressures on future margins and future cash flows," added Mclaren.

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 plan fee - includes five transactions
  • Unlimited free transfers to and from any existing business accounts

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

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

Sample calculation

2010 Sales of Allowable Commodities: $2,500,000
2010 Less Purchases of Allowable Commodities: $1,000,000
2010 Allowable Net Sales 1.5% X $1,500,000
2010 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 BMO's Agri ReadiLine, Equipment ReadiLine, flexible farm mortgages, BMO's Agri ReadiLine and loans under the Canadian Agricultural Loans Act.

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