Description of the Protection Program against Interest Rate Hikes

This program aims to minimize the impact of interest rate hikes on the finances of agricultural businesses.

It provides two advantageous protections against interest rate hikes in the event that the market interest rate exceeds an established threshold for a fixed period of time: the Preferred Rate and the Secure Rate for Aspiring Farmers.

Characteristics	Preferred Rate (PR)	Secure Rate for Aspiring Farmers (SRAF)
ProtectionThe Secure Rate for Aspiring Farmers and the Preferred Rate are calculated daily on the basis of the interest rate applicable to 1-year ordinary mortgage loans established weekly by the Bank of Canada from which the rate reduction of 0.30% is subtracted. Fermer l'infobulle	60% of the portion of interest exceeding 8%	100% of the portion of interest exceeding 4% until March 31, 2026As part of the measures to enhance the Interest Rate Protection Program, the STR at 4% will be guaranteed until March 31st, 2026, for eligible young farmers as of April 1st , 2024, even if this extends their protection beyond the usual 5-year period. After March 31, 2026, the level of protection will be reassessed. Fermer l'infobulle
Protected outstanding amount	Up to $500,000	Up to $500,000
Duration	Corresponds to the loan term	Maximum 5-year period, which begins automatically: upon receipt of the aspiring farmer subsidy, or when the FADQ recognizes the eligibility of an aspiring farmer in the business. After this 5-year period, the PR applies.

Exclusions

The following clients are ineligible for Protection against interest rate hikes:

member-borrowers
goods and services companies
agricultural businesses
forestry companies