Positive year for agriculture reflected in FCC annual results

July 22, 2015

Positive year for agriculture reflected in FCC annual results

Regina, Saskatchewan – Farm Credit Canada’s (FCC) continued strong financial position is supporting investment and growth in Canadian agriculture, according to the Crown corporation’s annual report.

“Our solid performance in the agriculture and agri-food industry allows us to build partnerships with customers and businesses across the country and in every sector,” said Michael Hoffort, FCC president and CEO. “It also ensures we’re there through all cycles to contribute to the success of farm families and rural communities – just as we have in our more than 55-year history.”

For the fiscal year ending March 31, 2015, FCC disbursed $8.6 billion to farmers, processors and suppliers along the agriculture value chain through more than 47,000 loans. As a result, FCC’s loan portfolio grew by $1.1 billion to $27.3 billion. Impaired loans – as a percentage of loans receivable – decreased by 0.1% to 1.1%.

“FCC’s financial performance is a testament to the strength and resilience of Canada’s agriculture sector,” Agriculture Minister Gerry Ritz said. “FCC continues to serve as a credible and respected business that is dedicated to the future of Canadian agriculture, providing long-term stability and security to the industry.”

Other 2014-15 financial highlights include:

• A net income of $908 million, which provides for a dividend payment to the Government of Canada as well as significant reinvestment in agriculture through funding new loans and the development of agriculture knowledge, products and services for customers.
• A dividend of $126.1 million paid by FCC to the Government of Canada.
•  A significant reduction in the allowance for credit losses reflecting a one-time accounting adjustment, as well as improvements in the health of the loan portfolio.
• Strong debt-to-equity and total capital ratios, indicating continued financial strength and an ongoing ability to serve the agriculture industry.
•  Over $2.42 billion in new loans to young farmers.

FCC’s 2014-15 net income increased by $266.1 million from the previous fiscal year primarily due to a large recovery arising from the reduction in the allowance for credit losses. An increase in loans receivable and net interest income combined with a decrease in administration expenses also contributed to the improved bottom line.

FCC’s solid financial position enables it to reinvest its profits back into Canadian agriculture by creating innovative products and services tailored to the changing needs of the industry, as well as supporting more than 100 learning events that provide Canadian producers and agribusiness operators with information and training to help advance their farm management practices. FCC also gives back to the communities where our customers and employees live and work.

“I’m incredibly proud of what we do every day at FCC to serve the industry that feeds an ever-growing world,” Hoffort said. “Canada is one of just a handful of nations capable of meeting a growing global demand for safe, high-quality food, and FCC is privileged to be a part of it.”

The FCC annual public meeting will be held in Surrey, British Columbia, on August 19, 2015. 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 $27 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 our website at www.fcc.ca or follow us on Facebook, LinkedIn, and on Twitter @FCCagriculture.

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For more information, photos, graphs, or interviews, contact:

Trevor Sutter
Corporate Communication
Farm Credit Canada
1-855-780-5313
trevor.sutter@fcc.ca