Farm Credit Canada’s loan portfolio grew by almost $2 billion to $25.1 billion, the Crown corporation says in its newly released annual report for 2012.
FCC disbursed $7.7 billion to farmers, processors and suppliers in the agriculture value chain through 47,000 loans during 2012, the report says.
“The bottom line is that agriculture has never mattered more to Canada and the world,” said Greg Stewart, FCC president and CEO, in releasing the report for the fiscal year ending March 31, 2013.
“At FCC, we see and live this every day. We believe in the strength of agriculture and the Canadians whose livelihood is food production.”
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Other financial highlights in the report include:
- The corporation saw a 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;
- There was an improvement in the allowance for credit losses at 2.5 per cent of loans receivable reflecting reduced risk in the loan portfolio and a strong agriculture economy;
- FCC saw 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.
“FCC’s ability to serve Canadian farmers and agribusiness operators depends on our knowledge of the industry and continuing to operate as a responsible financial partner to our customers.”
Over the past 10 years, FCC customers have grown their asset values and net income, while maintaining healthy farm debt-to-equity ratios. Strong business opportunities in agriculture, agribusiness and agri-food have also maintained the steady growth of FCC’s portfolio, the corporation says.
