In its 50th year of operation, Farm Credit Canada (FCC) met the financing needs of more customers in 2008-09 than in any previous year. The federal Crown corporation provides financing and business services to primary producers, value-added operators, suppliers and processors along the agriculture value chain.

With more than 47,000 borrowing customers in 2008-09, FCC approved 31,000 loans totaling $5.1 billion to Canadian producers, processors and suppliers. The figures, released recently in the FCC 2008-09 annual report for the year ending March 31, 2009, increased FCC's total lending portfolio to over $17 billion.

“We believe in our customers and in the agriculture industry. Seeing customers' pride in what they do and their innovation inspires me and FCC employees to help producers and business owners succeed,” says FCC President and CEO Greg Stewart.

Of 3,825 new customers, the vast majority at 3,626, are primary producers and 199 operate an agribusiness.

“Young people are key to the future of the industry,” Stewart continued. “That's why we approved $1.6 billion in lending to farmers under the age of 40. This is triple the amount from the previous year. Young producers and entrepreneurs tell us they want a lender who knows the industry and is going to be around for years to come.”

“The year 2008 will be remembered by our customers as volatile in terms of commodity prices, oil prices, labour and feed costs and the economy,” explains Dan Bergen, chief operating officer. “We know there are challenges in some sectors, but at the same time there is great opportunity. For example, of more than 4,300 respondents of the 9,000-member FCC Vision Panel, over half said they were optimistic about the future, and 66 per cent believed their business was in better shape at the time of the survey than five years ago.”

FCC experienced growth in all areas across Canada. The largest growth was in British Columbia, Alberta and Quebec. Quebec also saw the largest increase in net disbursements, largely due to lending in the value-added, poultry, crops and dairy enterprises.

Approximately one third of the FCC portfolio is in the crops sector, 22 per cent in dairy, 11 per cent in value added and 7.5 per cent in beef, with the remainder in poultry, hogs and other enterprises.

“Agriculture is the backbone of a strong and healthy Canada and FCC's financial picture is strong,” says Moyez Somani, Chief Financial Officer. “Equity has grown in each of the past five years and 97.5 per cent of our loans are in good standing. We continue to lend in all sectors and maintain our financial foundation so we can keep supporting agriculture and rural Canada.”

The FCC annual public meeting will be held in Lethbridge on Aug. 26.