“Every farmer I’ve met understands that their greatest challenge is their access to capital,” Wally Johnston, Bonnefield’s vice president of business development says. “Farming is a capital-intensive business and without it, it’s hard to reach the scale required to be successful.”
Bonnefield recognizes that the nature of farming requires leadership at the farm. Through their lease financing model, they leave the farming decisions to the talented professionals who know how to farm sustainably and profitably.
Case Study
The Smiths were a young couple who inherited a family farming business along with a heavy debt load. They were looking to grow their operation to a more efficient size and improve their financial situation. An equity investor would limit their freedom to make decisions about their business and going to a bank for a loan would increase their debt level, so they went to Bonnefield for help.
After a few short meetings with the team, the Smiths learned how working with Bonnefield could work with them to strengthen their business. Within several months, Bonnefield purchased 500 acres of their land and leased it back under their revolving lease structure. This guaranteed they would have long-term access to the land.
The following season, the Smiths found a large 2500-acre block of land nearby that Bonnefield bought and leased back to them to farm on a long-term basis. Through these two transactions, the family now had a larger land base to run a more efficient operation. They paid down debt and covered their input costs. Now, for the first time in multiple generations, the Smiths had a healthy balance sheet.
It's your turn. Reach out to Canada’s foremost provider of land-lease financing for farmers today. Learn how you can strengthen your balance sheet, improve your cashflow, and grow your business by partnering with Bonnefield.