FCC

FCC is Canada’s leading agriculture lender, with a healthy loan portfolio of more than $28 billion. Our employees are dedicated to the future of Canadian agriculture and its role in feeding an ever-growing world. We provide flexible, competitively priced financing, management software, information and knowledge specifically designed for the agriculture and agri-food industry. Our profits are reinvested back into agriculture and the communities where our customers and employees live and work. Follow us on Facebook, LinkedIn, and on Twitter @FCCagriculture.  



PRESS RELEASES

5 July 2016

FCC REPORTS. EQUIPMENT SALES REVEAL PULSE OF THE FARM SECTOR

Equipement de ferme tracteur

Promising farm cash receipt projections suggest new farm equipment sales will slowly improve over the next two years, according to Farm Credit Canada’s (FCC) latest agriculture economics report.

The report, Projecting 2016-17 Farm Receipts and Equipment Sales, forecasts a seven-per-cent recovery in total farm equipment sales for 2017, buoyed by projections of stronger cash receipts in coming years.

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“Farm equipment is among the most valuable assets for many farmers and is a great indicator for the state of the farm economy,” said J.P. Gervais, FCC’s chief agricultural economist. “While producers, manufacturers and dealers must exercise caution, strong demand for agricultural commodities, low interest rates and a stable Canadian dollar are all factors that should trigger improvement in the new farm equipment market.”

Total new farm equipment sales fell by 13.8 per cent in 2015, due to uncertainty surrounding Canadian crop production and weaker commodity prices. Higher prices for new equipment in Canada– as a result of a weaker Canadian dollar – also contributed to a decreased demand for equipment.

Strong new equipment sales prior to 2014 made 2015 sales appear low, even though they were in line with the 10-year average.

“Equipment sales are usually a leading indicator of farm health,” Gervais said. “Tighter margins in recent years have led several farmers to choose leasing over buying their agricultural machinery. We’ve also seen new groups of producers in the market buying and sharing farm equipment.”

New farm equipment sales for 2016 started off slow compared to 2015 sales levels, but are expected to turn the corner and should begin strengthening towards the end of 2016 and into 2017 thanks to an improved agriculture economic outlook, according to the FCC report.

“The reason we are projecting a turn-around in new farm equipment sales is that cash receipts for various agriculture sectors are looking stronger,” Gervais said. “Nothing is written in stone, but the key indicators are looking pretty good.”

The report projects crop receipts will increase 5.8 per cent in 2016, with a further 3.8-per-cent increase in 2017. These projections are highly influenced by strong prices in futures markets for major grains and oilseeds, as well as a Canadian dollar that is expected to remain below its five-year average.

Gervais said low interest rates also have both short- and long-term effects on farm equipment sales. Continued low interest rates should boost sales, especially of larger equipment.

To view the FCC Farm Equipment Sales Report and video, visit www.fcc.ca/FarmEquipmentSales. To join the discussion, visit the FCC Ag Economist blog post at www.fcc.ca/AgEconomist.

FCC is Canada’s leading agriculture lender, with a healthy loan portfolio of more than $28 billion. Our employees are dedicated to the future of Canadian agriculture and its role in feeding an ever-growing world. We provide flexible, competitively priced financing, management software, information and knowledge specifically designed for the agriculture and agri-food industry. Our profits are reinvested back into agriculture and the communities where our customers and employees live and work. Visit fcc.ca or follow us on Facebook, LinkedIn, and on Twitter @FCCagriculture.

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

Éva Larouche (bilingual) Corporate Communication Farm Credit Canada 1-888-780-6647 eva.larouche@fac.ca


8 March 2016

FCC adding $500 million to Young Farmer Loan

For immediate release

Regina, Saskatchewan, March 8, 2016 – Farm Credit Canada (FCC) is adding $500 million to its ongoing commitment to a loan program aimed at helping young farmers become established in the industry. Launched in March 2012, FCC’s commitment to the Young Farmer Loan has grown to $2 billion over four years, with almost 6,000 loans worth more than $1.3 billion approved, as of Dec. 31, 2015.

“FCC is proud to support the next generation of farmers through every stage of their career,” FCC President and CEO Michael Hoffort said. “Products like the Young Farmer Loan can make a real difference for producers looking to enter the industry or grow their business.” The Young Farmer Loan provides qualified producers, under age 40, with loans of up to $500,000 to purchase or improve farmland and buildings. The loan includes variable lending rates at prime plus 0.5 per cent, a special fixed rate if producers choose that avenue of repayment and no loan processing fees.

Shawn Paget, owner of Riverview Farm Corporation, used a Young Farmer Loan three years ago to acquire more land for his Hartland, New Brunswick-area potato farm. “FCC’s Young Farmer Loan was exactly what we needed to expand our operations in order to grow a wider variety of cash crops, such as soybeans, corn and cereals,” Paget said. “Access to flexible financing is very important when you are starting out or trying to become more established in the industry. It’s more than a loan – it’s an investment in the future of farming.”

Enabling young producers to borrow with no fees at affordable interest rates helps them develop a solid credit history and build their business. “The long-term success of Canadian agriculture relies heavily on our ability to attract and retain young, innovative people to the business of agriculture,” said Lawrence MacAulay, minister of Agriculture and Agri-Food Canada. “By helping the next generation become established in this vital industry, FCC is fulfilling an important part of its mandate and a key commitment of this government.” To find out more about the demographic impact of young farmers on Canadian agriculture, read the latest Ag Economist blog post at www.fcc.ca/AgEconomist.

The Young Farmer Loan enhances FCC’s suite of existing products and services that support young producers, such as the FCC Transition Loan, FCC Ag Knowledge Exchange events, FCC Publications, FCC on Campus, and FCC Management Software for both accounting and field management.

In 2014-15, FCC approved more than $2.4 billion in financing to farmers under age 40, representing more than one-quarter of the $8.6 billion in disbursements last year to help customers expand or start their operations. For more information on the FCC Young Farmer Loan, visit www.fcc.ca/youngfarmerloan or producers can call the local FCC office at 1-800-387-3232.

FCC is Canada’s leading agriculture lender, with a healthy loan portfolio of more than $28 billion. Our employees are dedicated to the future of Canadian agriculture and its role in feeding an ever-growing world. We provide flexible, competitively priced financing, management software, information and knowledge specifically designed for the agriculture and agri-food industry. Our profits are reinvested back into agriculture and the communities where our customers and employees live and work. Visit fcc.ca or follow us on Facebook, LinkedIn, and on Twitter @FCCagriculture.

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

Trevor Sutter Corporate Communications Farm Credit Canada 1-855-780-5313 trevor.sutter@fcc.ca


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