FCC reports positive year for agriculture
By Farm Credit Canada
July 19, 2013, Regina, SK - Farm Credit Canada (FCC)'s continued financial foundation is supporting investment and growth in Canadian agriculture, according to the Crown corporation's annual report.
During the fiscal year, Canada's leading agriculture lender disbursed $7.7 billion to farmers, processors and suppliers along the agriculture value chain through 47,000 loans, with an average value of $162,000. As a result, FCC's loan portfolio grew by almost $2 billion to $25.1 billion.
Other financial highlights include:
- Net income of $513.4 million, which provides for a dividend payment to the Government of Canada as well as significant reinvestment in agriculture through increased lending to customers and the development of agriculture knowledge, products and services
- An improvement in the allowance for credit losses at 2.5% of loans receivable reflecting reduced risk in the loan portfolio and a strong agriculture economy
- An improved debt-to-equity ratio of 6.7:1 indicating continued financial strength and an ongoing ability to serve the agriculture industry
- Continued support of the industry for customers needing alternative financing with $73.4 million in venture capital investments
Greg Stewart, FCC President and CEO, says FCC is committed to supporting young farmers and reinvesting back into rural communities.In 2012-13, FCC provided $2.3 billion to Canadian producers under the age of 40 to finance their future. FCC's Young Farmer Loan was also launched to inject a new $500 million in agriculture, enabling young farmers to purchase or improve farmland and buildings.
Other FCC investments in rural Canada included:
- $1 million through FCC's AgriSpirit Fund to 90 rural capital projects in communities across Canada
- Collection of 1.4 million pounds of food and $760,000 for food banks across Canada with the help of our partners and customers through the FCC Drive Away Hunger campaign
- $100,000 to 10 farm safety champions across the country through the FCC Ag Safety Fund
- $50,000 through the FCC Expression Fund to support the use of Canada's official languages
The FCC annual public meeting will be held in Westlock, Alberta, on August 21, 2013. A full copy of the report can be found at www.fcc.ca/annualreport.