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FCC Supports Canadian Agriculture & Producers. (Jul 23, 2012)
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FCC continues to support and serve Canadian producers, says annual report

 

FCC News Release

Regina, Saskatchewan, July 19, 2012 – In 2011-12, customer service, knowledge of agriculture and a long-term commitment to the industry caused producers and agribusiness operators to choose Farm Credit Canada (FCC) for financial and business services. In the fiscal year ending March 31, 2012, FCC had a record level of net disbursements, according to the FCC Annual Report released today.

“The future of agriculture looks very bright, and we’re fortunate to see this first hand with our customers,” says Greg Stewart, FCC President and CEO. “Never has Canadian agriculture mattered more to Canada and the world, and we’re proud to serve this innovative and diverse industry.”

Between April 1, 2011 and March 31, 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. The FCC portfolio grew to $23.2 billion and FCC continues to be Canada’s leading agriculture lender.

As a self-sustaining, commercial Crown, FCC does not receive appropriations from the federal government. Net income is reinvested in agriculture and ensures that FCC remains financially strong and stable to serve the industry through all cycles. Driven by record disbursements, improved portfolio health, strong expense management, as well as a gain on the sale of a venture capital investment, net income was $565.1 million.

“Part of our profitability this year is attributed to the reduction of the amount FCC sets aside for potential losses, which means that our customers’ financial positions have improved over the last year,” says Stewart. “Canadian agriculture is a challenging and rewarding industry filled with forward-thinking and business-savvy people who love what they do. Our bottom line tells us that our customers have improved their financial health, which is good news for the industry.”

“These are exciting times for Canadian agriculture and FCC is playing a key role in helping farmers succeed,” says Agriculture Minister Gerry Ritz. “Not only does FCC provide capital necessary for young and beginning farmers to grow their farm business but they are committed to improving the entire industry. The Agriculture More Than Ever website is just one more way FCC is helping to strengthen the agriculture industry for the future.”

“Agriculture producers also saw the value of their assets increase this past year due to the strong value of Canadian farmland, which has risen steadily over the past decade. This increase was combined with historically low interest rates and strong crop prices,” says FCC Chief Operating Officer Rémi Lemoine.

Financial highlights:
• Net disbursements of $7.1 billion
• Total portfolio growth of $1.8 billion to $23.2 billion
• Net income of $565.1 million, which is reinvested in agriculture and ensures that FCC remains self-sustaining
• FCC paid a dividend of $17.5 million to its sole shareholder, the Government of Canada
• Allowance for credit losses decreased by $33.4 million to $622.1 million
• Debt-to-equity ratio improved from 7.7:1 to 7.1:1 in 2011-12
• Impaired loans decreased by $25.5 million to $285.1 million and impaired loans as a percentage of loans receivable decreased 0.3 per cent to 1.2 per cent
• Renewal rates on loans decreased by 0.5 per cent to 97.2 per cent
• FCC Ventures, the corporation’s venture capital business, funded $8.5 million in new investments


Highlights of FCC’s contribution to rural Canada:
• FCC re-invested in agriculture:
- organized 265 FCC Learning events that over 27,000 people attended
- provided management publications such as the Knowledge Insider, AgriSuccess, the weekly FCC Express agriculture e-newsletter and e-learning webinars and videos
- rewarded $1 million toward 120 rural capital projects in communities across Canada – www.agrispirit.ca
- awarded $50,000 through the FCC Expression Fund to support the use of Canada’s official languages in Canadian communities – www.fccexpressionfund.ca
- distributed $100,000 to 10 farm safety champions across the country through the FCC Ag Safety Fund
• FCC honoured five women from across Canada who are active leaders in agriculture with the FCC Rosemary Davis Award – www.fccrosemarydavisaward.ca
• Working with community partners and customers, the FCC Drive Away Hunger campaign raised awareness about hunger and collected a record 2.4 million pounds of food across Canada

“Every day, Canadians are touched by agriculture and our entire FCC team is proud to be part of this great industry,” says Stewart.

The FCC annual public meeting will be held in Guelph, on August 15, 2012. A full copy of the report can be found at FCC Annual Report.

As Canada’s leading agriculture lender, FCC is advancing the business of agriculture. With a healthy portfolio of more than $23 billion and 19 consecutive years of portfolio growth, FCC is strong and stable – committed to serving the industry through all cycles. FCC provides financing, insurance, software, learning programs and other business services to producers, agribusinesses and agri-food operations. FCC employees are passionate about agriculture and committed to the success of customers and the industry. For more information, visit www.fcc.ca.


 
 
 
 
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