When transferring a farm business, La Financière agricole's Seller-Lender Formula may prove to be very attractive, not only for the seller-lender but also for the buyer.

Benefits of the formula for the seller-lender

• Represents an investment that is fully guaranteed by La Financière agricole;
• Ensures a good return on the capital;
  (The seller can obtain a return on the capital greater than with a term deposit¹. For example, the rate of return on a three-year term deposit is 2.30%. On a three-year mortgage rate² it is 5.60%. As a result, the seller can obtain twice the return with a rate of 4.60%.)
• Makes it possible to receive payments in the form of a monthly pension;
• Makes it possible to gradually transfer the company;
• La Financière agricole offers support for administering the loan.

Benefits of the formula for the borrower

• There are no administrative costs paid to the seller-lender for the follow-up made by La Financièreagricole ;
• Offers a better interest rate;

• Makes it possible to benefit from the expertise of a qualified team at La Financière agricole;

• May make it possible to benefit from the Financial Support Program for Aspiring Farmers;

• Minimizes the risk of interest rate hikes through a ten-year term.

¹ Rate in effect as of January 31, 2005 at the Fédération des caisses Desjardins du Québec.
² Rate in effect as of January 31, 2005 at the Fédération des caisses Desjardins du Québec.