FCC offers assistance to customers impacted by grain movement delays
Farm Credit Canada (FCC) is offering support to customers across western Canada facing potential cash flow problems due to delays in grain movement to international markets.
“We have been monitoring the grain movement situation for the past number of weeks and are aware it could have an impact on our customers’ short-term cash flow through the busy spring season,” said Michael Hoffort, FCC president and CEO. “We feel it is important that we be proactive and ensure our customers know that we are here to support them and have tools available to reduce the impact on their business from these unforeseen challenges that are beyond their control.”
FCC is available to support all its grain and oilseed customers potentially impacted by delays in grain delivery in the three Prairie provinces and British Columbia’s Peace region, and to explore options to address their individual needs.
“We will support customers as needed, and continue to ensure they have the financial means to get their crops in the ground this spring,” Hoffort said, noting FCC rolled out a similar program in 2014.
Lawrence MacAulay, Minister of Agriculture and Agri-Food Canada, said FCC is a strong and stable partner in the agriculture sector which is there to provide support for farmers.
“I am pleased that Farm Credit Canada will help producers deal with the unfortunate financial challenges caused by the delay in grain transportation,” MacAulay said. “Working with FCC, we will closely monitor cash flow concerns and ensure producers potentially impacted by delays in grain delivery have the flexibility they need. I also encourage all affected producers to consider applying to the federal Advance Payments Program (APP), a financial loan guarantee program that gives producers easier access to credit through repayable cash advances.”
The APP offers cash advances for stored or planted crop of up to $400,000, the first $100,000 interest-free. Under the APP, the federal government guarantees repayment of cash advances issued to farmers by producer organizations.
Customers are also encouraged to contact their FCC relationship manager or the FCC Customer Service Centre at 1-888-332-3301 as soon as possible to discuss their individual situation and options.
FCC is Canada’s leading agriculture lender, with a healthy loan portfolio of more than $33 billion. Our employees are dedicated to the future of Canadian agriculture and its role in feeding an ever-growing world. We provide flexible, competitively priced financing, management software, information and knowledge specifically designed for the agriculture and agri-food industry. Our profits are reinvested back into agriculture and the communities where our customers and employees live and work. Visit fcc.ca or follow us on Facebook, LinkedIn, and on Twitter @FCCagriculture.
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For more information or interviews, please contact:
Farm Credit Canada