New president/CEO discusses FCC’s year at annual public meeting

Press Release –

Regina, Saskatchewan – Farm Credit Canada’s (FCC) strong and stable financial position reflects continued strength and pride within Canadian agriculture, according to Michael Hoffort, newly appointed FCC president and CEO of the federal Crown corporation at his first public appearance.

“Enthusiasm in the agriculture sector is real and tangible,” Hoffort told an audience of customers, partners and stakeholders attending the FCC’s annual public meeting in Boucherville, Quebec. “This sense of renewal and opportunity is attracting new investment, innovation and young people to the industry, which is good for the industry, the economy and for all Canadians.”

Hoffort served FCC in various roles for 26 years, most recently as Chief Risk Officer. He was appointed by the Minister of Agriculture, Gerry Ritz, on July 1, 2014. Through the years, Hoffort has seen significant changes in the agriculture industry and growth in FCC’s portfolio.

“Over the past 10 years, FCC customers have invested in their operations and grown their net incomes while maintaining healthy farm debt-to-equity ratios,” said Hoffort. “Strong business opportunities in agriculture, agribusiness and agri-food have resulted in the steady growth of FCC’s portfolio. When our customers succeed, FCC succeeds and so do Canadians who should be proud of the industry’s success locally and globally.”

During the 2013-14 fiscal year, Canada’s leading agriculture lender disbursed $7.7 billion to farmers, processors and suppliers along the agriculture value chain, and $2.3 billion went to young farmers – those under 40. As a result, FCC’s loan portfolio grew by $1.1 billion to $26.2 billion.

FCC provided a dividend payment of $50.3 million to the Government of Canada. FCC’s net income was $642 million – an increase of $138.4 million from last year, which was primarily due to a decrease in the provision for credit losses. This enabled FCC to continue reinvesting in agriculture through increased lending to customers, as well as invest more than $1 million to support rural capital projects, promote farm safety and Canada’s official languages.

Sophie Perreault, FCC’s newly appointed chief operating officer, said a decrease in the percentage of impaired loans points to strength and confidence in Canadian agriculture.

“Our commitment to agriculture is unwavering because agriculture is all we do. We are there for the industry through every business cycle,” Perreault said. “By working with other financial institutions and credit unions, we ensure everyone in the agriculture value chain has access to financing that meets their needs, along with choice in the marketplace.”

Dr. Maurice Doyon, a professor at Laval University’s Agriculture Department, presented an analysis of the potential impact of future Canadian trade agreements at this year’s annual meeting.

“Bilateral and plurilateral agreements are essential to our economy and the agri-food sector,” Doyon said. “The challenge is to use the opportunity to modernize the system and change threats into opportunities. Canadian producers and agriculture businesses are among the most sophisticated in the world and they stand to benefit.”

FCC holds annual public meetings in various locations across Canada to give customers and the public an opportunity to learn more about the commercial Crown corporation and its performance over the past fiscal year, as well as to pose questions about future business direction.

To view FCC’s annual public meeting presentations, visit www.fcc.ca/annualpublicmeeting. A full copy of the annual report can be found at www.fcc.ca/annualreport.

FCC is Canada’s leading agriculture lender, with a healthy portfolio of more than $26 billion and 21 consecutive years of portfolio growth. FCC is strong and stable – committed to serving the industry through all cycles, and to being socially and environmentally responsible. FCC provides financing, insurance, software, learning programs and other business services to producers, agribusinesses and agri-food operations. Employees understand agriculture and are committed to the success of customers and the industry. With FCC in the market, producers benefit, agriculture benefits, rural Canada benefits and so do all Canadians. For more information, visit www.fcc.ca. Follow Farm Credit Canada on Facebook, LinkedIn and Twitter @FCCagriculture.

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For more information, interviews, graphs or photos, please contact:

Éva Larouche
Farm Credit Canada
Corporate Communication
1-888-780-6647
eva.larouche@fcc.ca