Bonnefield. Farmland Lease Financing helping farmers reach their goals. Bonnefield Financial Inc. Ontario Land Trust March 30, 2017

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Sharyl Cross
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1 Bonnefield Financial Inc. Bonnefield Ontario Land Trust March 30, 2017 Farmland Lease Financing helping farmers reach their goals

2 Bonnefield: Financial the WHY Inc. 1

3 Bonnefield we provide Financial land-lease Inc. financing to Canadian farmers 2 INVESTORS Long term Low risk FARMERS Reduce debt Expand Secure land Succession Retirement We don t look for farmland to buy. We are a financial partner for progressive, growth-oriented Canadian farmers, helping them overcome challenges and reach their goals with farmland lease financing.

4 Bonnefield Capital intensive Financial industry Inc. 3

5 Bonnefield benefits of Financial the Bonnefield Inc. model 4 Farmer s Goals Bonnefield Solution strengthen balance sheet sale leaseback of currently owned land improve cash flow sale leaseback of currently owned land retirement planning farm succession secure currently leased land farm growth sale leaseback of currently owned land sale of currently owned land, lease back to younger farmer acquire land currently leased from others, lease from Bonnefield on long-term basis acquire new land, lease from Bonnefield on long-term basis

6 Bonnefield A case study: Financial finding Inc. balance at the crossroads 5 husband and wife team 3000 acres; potatoes 2 children studying agricultural wanted to expand operations Farmer s Goals healthy balance sheet early succession planning peace of mind long-term lease no change for new land existing land $$ new land

from retired farmer retired farmer wanted to sell wasn t just any land; rented land was his home

7 Bonnefield A case study: Financial Home Inc. is where the Farm is 6 second generation farm family in Ontario owned land and also rented acres from retired farmer retired farmer wanted to sell wasn t just any land; rented land was his home yard and house Farmer s Goals ensure continued access to land for long term facilitate long-term business planning and investment long-term lease no change $$

8 Bonnefield A case study: Financial home Inc. is where the farm is 7 second generation farm family in Ontario owned land and also rented acres from retired farmer retired farmer wanted to sell wasn t just any land; rented land was his home yard and house Farmer s Goals ensure continued access to land for long term facilitate long-term business planning and investment long-term lease no change $$

9 Bonnefield A case study: Financial Food Inc. and Water First acres of class 1 farmland threat: aggregate quarry today: sustainably farmed by 6 local farm families

10 Bonnefield as-if owned Financial lease Inc. terms 9 Term Rolling feature Lease rates long term 5-year rolling terms preferred at end of each year, farmer has option to renew for 1 additional year ensures secure access to land competitive with (or better than) mortgage rates no down payment requirement as with mortgage financing periodic rate renewals Other costs Other features property tax maintenance insurance Bonnefield does not dictate farming activities Bonnefield Standards of Care annual compliance

11 Bonnefield Financial Standards Inc. of Care ensure that the quality and productivity of the farmlands are protected and enhanced with the goal of maximizing long-term returns and protecting Farmland for Farming TM 10 soil agrology testing top soil conservation/tillage crop rotation plans pesticide plans nutrient management surface water control water courses/streams wood lot management erosion control record keeping

12 Bonnefield contact Financial Inc. 11 Lisa Courtney Lloyd Vice President, Marketing

AGRICULTURAL CONSERVATION EASEMENTS

AGRICULTURAL CONSERVATION EASEMENTS OTSEGO COUNTY PLANNING DEPARTMENT REASONS FARMERS CONSERVE THEIR FARMS Protect the land/farm for future generations Transfer the farm to a family member Reduce long-term