FCC lends $3.8 billion to agriculture

Regina, Saskatchewan, July 20, 2006 – Farm Credit Canada (FCC) recorded a 13th consecutive year of growth in 2005-06, lending $3.8 billion to Canadian producers, processors and suppliers.

"More than ever, Canadian agriculture needs a solid financial partner that understands the industry," says FCC President and CEO John Ryan. "I'm often told that FCC is different. People say that we ‘get agriculture'. We care about the people involved in this industry. That's why we develop services and products tailored to their unique needs."

"We listen to our customers as they share with us their opportunities, concerns and challenges. Last month, in response to feedback from our customers and the industry, we launched our new Accelerator Loan, a $50 million commitment in new lending to young farmers. This will help buyers and sellers transfer farms and farm assets from one generation to the next. We see opportunities for young farmers. We see a future in agriculture."

Highlights from 2005-06 include:

• Lending of $3.8 billion, with net disbursements of $3.3 billion.
• Total lending portfolio grew by $1.1 billion to more than $12 billion.
• Net income of $170 million, which is reinvested back into agriculture.
• Return on equity of 14.4 per cent, up from 11.6 per cent in 2004-05.
• Debt-to-equity ratio decreased slightly from the previous year to 9.5:1.
• More than 300 FCC customers began showcasing their products and services free of charge on CanadianFarmersMarket.com.
• FCC contributed more than $1 million to Canadian communities, including the FCC AgriSpirit Fund which helped fund 42 rural capital projects.
• FCC employees also volunteered 2,280 hours, benefiting 62 charitable organizations across the country.
• FCC offered 90 training events regarding advanced farm management practices to enhance producer success. 
• AgriSuccess Journal was published six times and sent free of charge to more than 14,000 subscribers.
• For the third consecutive year, FCC was named one of the top 50 companies to work for in Canada by The Globe & Mail Report on Business and Hewitt Associates.

"Our strategy is to continue supporting our customers and reinvesting in agriculture," says Ryan. "It's important for us to have a strong financial position today to help our customers capitalize on opportunities as well as deal with any future challenges."

FCC is Canada's largest provider of business and financial solutions 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 $12 billion and 13 consecutive years of portfolio growth are a reflection of our customers' success.

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For more information, please contact:

Derek Rawlings
Corporate Communication
Farm Credit Canada
(306) 780-8535
derek.rawlings@fcc-fac.ca

Nadine Hakim (bilingual)
Corporate Communication
Farm Credit Canada
(306) 780-8572
nadine.hakim@fcc-fac.ca

Tim Kydd    
Corporate Communication   
Farm Credit Canada    
(306) 780-3486   
tim.kydd@fcc-fac.ca