Farm Credit Canada

Farm Credit Canada

July 19, 2007 10:16 ET

FCC Lends $4.2 Billion to Agriculture

REGINA, SASKATCHEWAN--(Marketwire - July 19, 2007) - Farm Credit Canada (FCC), Canada's leading provider of financial and business services to the agriculture industry, lent $4.2 billion to Canadian producers, processors and suppliers in 2006-07, recording the corporation's 14th consecutive year of growth.

"We're helping our customers to succeed and making a positive difference to Canadian agriculture," FCC President and CEO John Ryan says. "With a $13 billion portfolio, we are a stable financial partner that understands the unique needs of agriculture. We're helping producers and agribusiness operators to start or expand their operations. There is an innovative, entrepreneurial spirit today. More young people are saying, 'I'm young, I'm educated, I can do anything and I choose agriculture.'"

In 2006-07, FCC committed $50 million in new lending to young farmers through the Accelerator Loan. The loan helps enable buyers and sellers to transfer farms and farm assets from one generation to the next.

FCC highlights from the 2006-07 fiscal year include:

- Lending of $4.2 billion, with net disbursements of $3.7 billion

- Total lending portfolio grew by $1.2 billion to $13.6 billion

- Net income of $203.8 million, which is reinvested in agriculture

- Return on equity of 15 per cent, up from 13.4 per cent in 2005-06

- Debt-to-equity ratio decreased to 8.5:1 in 2006-07 from 9.0:1 in 2005-06

- FCC adopted a corporate social responsibility framework and introduced new bio-security protocols to protect customers

- The FCC AgriSpirit Fund provided $500,000 toward rural Canadian community improvement projects like new emergency services equipment, playground and recreation centre construction and food bank renovations

- FCC employees volunteered 3,000 hours, benefiting 60 charitable organizations across the country

- FCC acknowledged five women who are active leaders in Canadian agriculture with the FCC Rosemary Davis Award, named after the first female FCC Board Chair and a successful agribusiness owner and operator

- FCC helped collect over 410,000 pounds of food to raise awareness on World Food Day

- Canadians can purchase 369 products direct from FCC customers on the FCC website CanadianFarmersMarket.com

- FCC offered 85 advanced farm management training events to enhance producer success

- Nearly 2,700 customers and those involved in agriculture attended the largest AgriSuccess learning event series FCC has ever hosted, entitled Winning in Agriculture

- AgriSuccess Journal was published six times, and in March, the subscription list expanded to include all FCC loan customers

- FCC was named by the Globe & Mail's Report on Business magazine and Hewitt Associates as the eighth best employer in Canada - the fourth consecutive year FCC has been in the top 50 and the highest ranking to date

"FCC employees care about the people who are involved in agriculture. Customers tell me that sets us apart," Ryan says. "Maintaining a solid financial position enables us to reinvest in the industry, communities and individuals - whether that means helping someone pursue a new opportunity or being there during challenging times."

To enhance the corporation's commitment to transparency and public accountability, FCC will hold its first annual public meeting in Moncton, New Brunswick, on August 20, 2007. More details can be found in the Media Newsroom under About Us at www.fcc.ca.

To view the full Annual Report in pdf format, please visit the same web location as above.

FCC is Canada's largest provider of business and financial services to farms and agribusiness. Operating out of 100 offices located primarily in rural Canada, FCC employees are passionate about the business of agriculture. A healthy portfolio of more than $13 billion and 14 consecutive years of portfolio growth are a reflection of our customers' success.

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