FCC profits benefit agriculture and rural Canada: annual report
Regina, Saskatchewan – A strong financial performance enables Farm Credit Canada’s (FCC) to enhance products and services for customers, give back to communities and provide free learning opportunities for the entire industry, said FCC president and CEO Michael Hoffort, in releasing the federal Crown corporation’s annual report.
“This year’s outstanding financial performance fuels our ability to give back to Canadian agriculture in so many ways,” Hoffort said. “FCC is a part of this great industry and our involvement goes well beyond financial transactions.”
In 2016-17, FCC gave back more than $3 million through community investment initiatives and led the industry in launching Canada’s Agriculture Day to celebrate and increase public awareness of the Canadian agriculture and agri-food sector.
FCC continued to focus on ag education and safety through its support for groups, such as 4-H Canada, Ag in the Classroom, industry associations, STARS air ambulance service and the Canadian Agricultural Safety Association’s Back to Ag program to help injured farmers and agricultural workers return to work. Profits are also used to support health and wellness initiatives, such as Agriculture Safety Week and FCC Drive Away Hunger in support of Food Banks Canada.
FCC continues to provide free learning opportunities and economic insights through social media and various publications for all involved with the industry.
For the fiscal year ending March 31, 2017, FCC grew its portfolio by $2.6 billion to $31.2 billion in loans to farmers, processors and suppliers throughout the agriculture value chain.
More than $3.2 billion in new lending went to young farmers this year. As part of its effort to support young people wanting to enter or become established in the industry, FCC doubled the borrowing limit on its Young Farmers Loan to $1 million and introduced the Young Entrepreneur Loan for the agriculture retail, manufacturing and food processing sector.
Other 2016-17 financial highlights include:
- Net income of $613.8 million, which will be reinvested in agriculture through funding new loans and developing agriculture knowledge, products and services for customers.
- A dividend of $268.3 million paid by FCC to the Government of Canada.
- A healthy loan portfolio with the allowance for credit loss remaining steady, reflecting a strong and vibrant industry.
- Strong debt-to-equity and total capital ratios, indicating continued financial strength and an ongoing ability to serve the agriculture industry.
FCC adjusted payment schedules on almost 300 loans through various support programs for customers impacted by unforeseen circumstances, such as extreme weather or disease.
“Our business is built on strong, caring relationships with our customers and our passion for the industry that feeds the world,” Hoffort said. “We are unlike any other financial institution in Canada, since agriculture is our only focus and we are committed to serving as a strong and stable partner throughout all business cycles.”
“I was pleased to help launch FCC’s new and expanded loan programs for young farmers and entrepreneurs – two specialized loans that are helping young farmers, farm families and agri-food entrepreneurs fulfill their business ambitions,” Agriculture Minister Lawrence MacAulay said. “In partnership with my department, FCC is contributing to the strong performance of Canadian agriculture and meeting our government’s ambitious goal of increasing agri-food exports to $75 billion by 2025.”
The FCC annual public meeting will be held in Regina, Saskatchewan on August 16. A full copy of the report can be found at www.fcc.ca/annualreport.
FCC is Canada’s leading agriculture lender, with a healthy loan portfolio of more than $31 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.
For more information, photos or interviews, contact:
Farm Credit Canada