Good times on the farm have meant good financial times for Farm Credit Canada, too.
In its annual report, released this week, the Regina-based federal Crown corporation said its portfolio grew to a record $23.2 billion, an increase of $1.8 billion over last year.
At the same time, impaired loans fell by $25.5 million to $285.1 million.
That reflects not only healthy economic times, but the steadily advancing business skills of the farmers and agribusiness managers with whom FCC deals, senior vice-president of marketing Lyndon Carlson said.
In other highlights from its annual report, FCC said:
. Net income was $565.1 million, with a dividend of $17.5 million paid to FCC's only shareholder, the Canadian government.
. Allowance for credit losses fell by $33.4 million to $622.1 million.
. In fiscal 2012, FCC disbursed $7.1 billion to farmers, processors and suppliers along the agriculture value chain. Over 45,000 loans were disbursed with an average size of $156,000.
. There was $8.5 million in new investments by FCC's venture capital arm, FCC Ventures, which Carlson said was created about 10 years ago to spur innovation in Canadian agriculture. Its portfolio - $118 million - is tiny in comparison with FCC's total portfolio, but Carlson said its importance is the way in which it opens the door to the kind of innovation that's made Canadian agriculture among the most efficient in the world.
Looking ahead, Carlson said FCC wants to highlight its new Young Farmer Loan Program, which is aimed at getting more young people into agriculture. It consists of a $500-million fund that can be used to loan up to $500,000 to each young (under age 39) member of a new farm operation at a rate of only prime plus 0.5 per cent.
Applications must meet normal tests for lending, but "at a price that young persons might not expect to pay," said Carlson, adding that demand for this fund has been sufficiently heavy that $100 million has already been invested - a clear sign of the interest some young Canadians have in getting into farming.
Carlson said FCC is keenly aware of the falling number of farms and rising average age of Canadian farmers, but sees this in a historical perspective.
First, the number of farms has been falling since reaching a peak in the early 1930s, but this is balanced by ever-improving technology that lets remaining farmers handle and manage farms more efficiently than ever.
Also, the average age of Canadian farmers - 56 or so - means they have the benefit of plenty of experience, many of them with children interested in gradually taking over their farms - one of the few places where generations can work alongside each other and retirements can be gradual.
Said Carlson: "I would say that farmers aren't in a rush to retire."
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