Farm credit increased significantly in the late 1970s as Canadian farmers expanded their operations to meet greater world demand with expectations of continuing high commodity prices for their production.
[2] In the early 1980s, prices collapsed, and annual interest rates suddenly rose from 10% to as high as 24%.
[4] To provide debt relief on a nationwide basis, the Act was introduced in June 1986, and received Royal Assent later that month.
The Act's scope was broad, as noted in its definitions:[5] Its aim was to "help farmers with the potential to be viable and remain in business.
All applicants are provided with an opportunity to receive third-party expert advice on these financial affairs and relationships with their creditors.