Farm Credit Canada's 2010-2011 Annual Report

Farm Credit Canada's 2010-11 annual report shows the agricultural lender experienced solid growth over the fiscal year. canadian producers and agribusinesses chose to do business with FCC in record numbers according to the report.

In the fiscal year ending March 31, 2011, FCC approved $6.2 billion in disbursements to farmers, processors and suppliers along the agriculture value chain. Over 42,000 loans were disbursed, with an average size of $146,000. The FCC portfolio grew to $21.3 billion, and FCC continues to be Canada's leading agriculture lender. Net income was $459.2 million, which is reinvested in agriculture and also ensures that FCC remains financially strong and stable in order to serve the industry through all cycles.

Chief Financial Officer Rick Hoffman says the crown corporation saw strong demand from customers. He notes, of the $6.2 billion in disbursements, $1.6 billion was to young farmers under the age of 40 something hoffman and FCC feels is very important. Hoffman says agriculture matters a lot to Canada and Canadians, noting it provides 1 of every 8 jobs in the country and contributes over 8% to the nation's gross domestic product. He stresses it's vitally important the industry has young entrants coming in to replace those reaching retirement.

He says, based on the numbers they saw last year, the health of the Canadian ag industry is pretty good. There was a continued demand for credit, and that was consistent across the country with FCC experiencing growth in its loan portfolio in all geographic regions. Hoffman notes there certainly are some sectors and areas of the country that are dealing with challenges, but overall the industry is quite healthy.

With first quarter of 2011-12 behind them, Hoffman says things are shaping up pretty good. He notes going into the year, with the market anticipation of increased interest rates, FCC was expecting somewhat of a slow down but with the Bank of Canada yet to increase interest rates there continues to be a strong demand for credit. Hoffman says FCC is currently on pace with last year, which means the ag industry continues to be strong.