Farm Credit Canada

Farm Credit Canada

July 17, 2008 10:43 ET

FCC Lends $4.3 Billion to Agriculture

REGINA, SASKATCHEWAN--(Marketwire - July 17, 2008) - Farm Credit Canada (FCC) lent $4.3 billion to more than 19,000 Canadian producers, processors and suppliers in 2007-08, helping to advance the business of agriculture. Fiscal year 2007-08 marked the corporation's fifteenth consecutive year of growth.

"Agriculture is an important business in Canada and producers and agribusiness operators consistently impress me with their passion and commitment," says FCC President and CEO Greg Stewart. "Their success is why FCC experienced another solid year, in spite of the challenges faced in some sectors."

Nearing 50 years in business, FCC is a stable financial partner whose employees have the depth of agriculture knowledge and experience to understand the unique financing needs of primary producers and agribusiness. This includes long-time producers and new entrants. Both groups are inspired by the exciting things happening in the industry.

In 2007-08, FCC approved over $500 million in new lending to young farmers. FCC also introduced Start Now - Pay Later, which lets producers gain financial stability before having to make loan payments.

Highlights from fiscal 2007-08 include:

- Lending of $4.3 billion

- Total lending portfolio grew by $1.4 billion or 10.6 per cent to $15 billion

- Net income of $205.1 million, which is reinvested in agriculture

- Return on equity was 13.1 per cent, down from 15 per cent last year

- Debt-to-equity ratio decreased slightly to 8.2:1 in 2007-08 from 8.5:1 in 2006-07

- FCC hosted 86 Ag Day in Canada events across the country to pay tribute to those who live and breathe agriculture. Over 4,200 individuals attended these events

- The FCC AgriSpirit Fund provided $500,000 toward 58 rural Canadian community improvement projects

- FCC employees volunteered 4,000 hours, benefiting charitable organizations across the country, an increase of 25 per cent

- FCC acknowledged five women who are active leaders in Canadian agriculture with the FCC Rosemary Davis Award

- FCC helped collect over 300,000 pounds of food through Drive Away Hunger tours to raise awareness about hunger on World Food Day

- The FCC web site CanadianFarmersMarket.com provided an opportunity for Canadians to purchase products directly from more than 330 FCC customers

- FCC offered 86 workshops, seven learning tours and eight major Winning in Agriculture events to enhance producer success

- FCC moved to seventh place (from eighth) on the Globe & Mail's Report on Business magazine's list of Canada's 50 Best Employers

"Our solid financial position enables us to reinvest in the industry, communities and individuals. That ranges from helping a customer pursue a dream to offering assistance when times are challenging," says Stewart. "Agriculture is the backbone of a strong and healthy Canada and includes food, drink, nutraceuticals, renewable energy and a clean environment. Those involved in the industry use highly sophisticated management practices, processes, knowledge and financial skill to run their operations."

To enhance the corporation's commitment to transparency and public accountability, FCC will hold its second annual public meeting, this year in Regina, Saskatchewan on August 6, 2008. More details can be found at www.fcc.ca.

To view the full Annual Report in pdf format, please visit the same web site 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's 1,400 employees are
passionate about the business of agriculture. A healthy portfolio of more than $15 billion and 15 consecutive years of portfolio growth are a reflection of our customers' success.

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