Farm Credit Canada released its annual report earlier this month.
Among its highlights, the report noted that FCC reinvested its net income of $281.9 million in agriculture and approved $6.6 billion in disbursements to producers, processors and suppliers along the agriculture value chain. This lending helped to grow FCC’s portfolio to $19.7 billion.
“Lending to farmers and those who supply their needs and process their crops into food and other products is our only business,” says FCC president and CEO Greg Stewart. “We believe in helping producers and agribusiness operators to build their businesses in good times and weather the challenging times.”
Recognizing that young people are key to the future of the industry, FCC approved loans of over $1.8 billion to farmers under the age of 40.
“In fiscal 2009-10, producers and agribusiness operators moved through fallout from the global economic situation,” explains incoming chief operating officer Rémi Lemoine. “There was volatility, but the initial impact on agriculture was less dramatic than predicted. We continued to see credit availability across financial institutions, which is a good thing. FCC continued to lend to all sectors, including those experiencing major challenges.”
“While farm debt levels have continued to increase, partly because of low interest rates, customers continue to make their payments and arrears levels have remained low,” says chief financial officer Moyez Somani. “At the end of March 2010, 97.7 per cent of our loans were in good standing, slightly better than 97.5 per cent last year.”
Other highlights for the fiscal year ending March 31, 2010, included the introduction of a new energy loan to help producers move toward producing renewable energy; honouring five women from across Canada who are active leaders in agriculture with the FCC Rosemary Davis Award; raising awareness about hunger and collecting over 1.6 million pounds of food across Canada by working with community partners and customers in the FCC Drive Away Hunger campaign; and being listed ninth in the Hewitt/Globe & Mail’s Report on Business magazine 50 Best Employers in Canada list.
The organization also reinvested $7.9 million dollars in agriculture programs across the country. Those programs allowed over 10,000 people to attend 162 FCC learning events; put $1 million in grants toward 115 rural capital projects in communities across Canada; awarded $50,000 through the FCC Expression Fund to support the use of Canada’s official languages in Canadian communities; partnered with Agriculture in the Classroom to provide $100,000 for new and updated materials to teach children where their food comes from; and partnered with and provided $100,000 to the Canadian Agriculture Safety Association to create a new national agriculture safety training fund.



