FCC supports hog sector customers impacted by price decline
Farm Credit Canada (FCC) is offering support for hog-producing customers facing financial hardship as a result of international trade disputes.
Hog prices in Canada have declined by 30 per cent over the last several weeks due to a rising supply of pork in the U.S. and tariffs on U.S. pork exports applied by large pork importing countries. The subsequent collapse in U.S. hog prices has also brought down prices in Canada to a level where many operations are no longer profitable.
“The impact on the market happened so fast that many producers didn’t have an opportunity to forward contract or lock in at profitable prices,” said Michael Hoffort, FCC president and CEO. “Customers who are hog producers might not have the financial flexibility and may need some cash-flow relief to make it through the current price squeeze.”
“We want our customers to know we will work with them to find solutions to assist them through this unexpected price disruption,” he said.
FCC will work with customers to come up with solutions for their operation and will consider deferral of principal payments and/or other loan payment schedule amendments to reduce the financial pressure on producers impacted by the price drop.
"We understand that commodity price disruptions can have a significant impact on farmers and I am pleased FCC is standing behind its customers during this stressful time," said Lawrence MacAulay, Minister of Agriculture and Agri-Food Canada.
“Canada has a great reputation as a consistent producer of safe, high-quality commodities to feed a growing world,” MacAulay said. “Our government continues to support Canadian agriculture through investments in research and innovation – investments that will help put Canada within reach of its $75 billion target in agriculture and agri-food exports annually by 2025.”
FCC offers flexibility to all customers through challenging business cycles and unpredictable circumstances on a case-by-case basis.
Customers who are hog producers are encouraged to contact their FCC relationship manager or the FCC Customer Service Centre at 1-888-332-3301 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. As a self-sustaining Crown corporation, our profits are reinvested back into the agriculture and food industry we serve and the communities where our customers and employees live and work while providing an appropriate return to our shareholder. Visit fcc.ca or follow us on Facebook, LinkedIn, and on Twitter.
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