News Releases

SASKATOON, AUGUST 6, 2010 – Farmers in the Prairie Provinces may lose up to $3 billion as a result of this year's heavy rains and flooding in Saskatchewan and Manitoba, according to BMO Capital Markets Economics.

"For many, this is a very real crisis – to put it in perspective, we are getting in the range of the economic impact of the BSE crisis seven years ago, which cost farmers $5 billion," said Douglas Porter, Deputy Chief Economist, BMO Capital Markets. "Farmers in the affected region on average have seen almost 20 per cent of their crops unplanted."

To assist commercial customers affected by the extensive damage, BMO Bank of Montreal has launched a Financial Flood Relief Program. Under the program, BMO customers can apply for:

· Deferred principal payments

· A waiver of new loan application or renewal fees.

"We want to assist our farm customers that were affected by the flooding. This program will help alleviate the difficulties being faced by farmers in affected communities across Canada's Prairies," said Robert Hayes, Senior Vice President, Prairies, BMO Bank of Montreal. "Many acres will go unseeded, crops remain stressed, and those already sown are estimated to be one to two weeks behind."

The program is specifically designed for producers directly affected by the flooding and those in related industries who will face cash-flow challenges in the coming months given their dependence on a productive agriculture industry. The program is available until November 30, 2011, giving producers time to market a portion of next year's crop.

In addition, BMO Bank of Montreal offers programs and products including a specialized farm-equipment line of credit, flexible farm mortgages, and BMO's new AgriInvest Savings Account, which allows agricultural customers to double their savings by generating matching government funds. The savings rate on BMO AgriInvest account balances is 1.10 per cent, which as much as doubles what farmers are currently earning and what other financial institutions are paying.

About BMO Bank of Montreal

BMO's roots in the Canadian agricultural sector date back almost 200 years, to 1817, when it first began working with farmers. Today, BMO enjoys a well-founded reputation for providing customized loan and deposit solutions to Canada's agri-business owners, the single largest core commercial sector that the bank serves.