Farm Credit Canada has developed a $100 million venture capital fund to assist agricultural businesses to get through major unexpected disruptions such as the COVID-19 pandemic.
Announced by Federal Agriculture Minister Marie-Claude Bibeau as offering flexible innovative solutions to preserve investments and jobs, the fund will offer solutions like convertible debt.
Convertible debt can be paid back or converted into equity shares of a company.
The Agriculture and Business Venture Solutions Fund will be launched with an FCC partner, Forage Capital of Calgary. The Alberta-based venture capital organization will help set up stability for companies with unexpected business disruption.
The FCC also recently announced $50 million in funds toward three new venture capital funds.
They include $20 million of the $100 million InvestEco Sustainable Food Fund, $20 million of the $100 million District Ventures Fund and $12 million of the $24 million Ag Capital Fund to nurture developing ag business.
The federal government’s previous pandemic assistance to agriculture involved $5 billion interest-free lending capacity, $252 million for the food processing sector, and a food buying project as well as the wage subsidy and business programs offered to business.
Ron Walter can be reached at ronjoy@sasktel.net
