FCC posts slightly lower profit, loans $3.2B to young farmers

Farm Credit Canada’s annual report released Thursday showed the federal Crown corporation based in Regina posted a net profit of $613.8 million, down slightly from the previous year of $615.5 million.

“We were able to kind of have some real impacts that relates to some work with young farmers in some areas in agri-business and agri-food side of things as well,” said CEO Michael Hoffort. The 2016-17 report showed FCC grew its portfolio by $2.6 billion to $31.2 billion in loans to farmers, processors and suppliers.

“There was growth in all sectors of our business and we really feel that we grew in step with the industry’s growth as it relates to debt growth,” Hoffort said.

The 2016 growing season was hard on farmers in Saskatchewan and Alberta, with around a million acres of crop left out in the field over winter in both provinces, which led FCC to adjust payment schedules on almost 300 loans.

As well, FCC loaned more than $3.2 billion to young farmers over the year. And as part of the Crown’s efforts to support young people wanting to enter or establish themselves in the industry, FCC doubled the borrowing limit on its Young Farmers Loan program to $1 million and introduced the Young Entrepreneur Loan for the agriculture retail, manufacturing and food processing sectors.

The Statistics Canada Agriculture Census released in May showed the number of farmers under the age of 35 increased by three per cent from 2011, which was the first increase in the age category since 1991.