Benoît Chaput’s dairy operation is located in Varennes, in the Montérégie region. Benoît took over the family farm in 2002. Of a modest size at the time, the operation had a quota of just 10 kg of butterfat a day at the time of the transfer. Today, the dairy farm’s production capacity has tripled and organic soybean and hay productions have been added.
The challenge for this transfer project was to increase the farm’s production capacity, bringing it to a high enough level for the young producer to earn a decent income. In short, to undertake both a transfer and an expansion, while at the same time limiting the operation’s debt load. The approach adopted to curb debt was to lease the farmland and dairy buildings rather than to purchase them. As a result, the operation could use its borrowing capacity for purchasing the quota and improving the dairy herd, essential investments for increasing the operation’s income.
Financial institutions and La Financière agricole are partners with a responsible vision for financing the agricultural sector. The use of credit can sometimes not be avoided, especially for a business transfer. Credit can provide farm entrepreneurs with access to ownership and allow their operations to expand or their productivity to increase. By sharing a responsible approach to financing, a partnership that joins strengths contributes to the vitality and prosperity of agriculture, while avoiding the cycle of credit overload.
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