Farm Credit Canada
Encyclopedia
Farm Credit Canada or FCC, is Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

's largest agricultural term lender.

This organization's purpose is to enhance rural Canada by providing specialized and personalized financial services to farming operations, including family farm
Family farm
A family farm is a farm owned and operated by a family, and often passed down from generation to generation. It is the basic unit of the mostly agricultural economy of much of human history and continues to be so in developing nations...

s. Although once exclusively a farm lender, FCC is now also organized to provide funding to enterprises that are closely related or dependent on farming. Its small and medium business focus is shown by its average loan disbursement of $109,000.

History and governance

FCC was established in 1959, under the Farm Credit Act, at that time solely to provide loans to farmers. It succeeded the Canadian Farm Loan Board, which had been in operation since 1929.

On April 2, 1993, Parliament passed the Farm Credit Corporation Act which then allowed the organization to expand beyond straightforward farm loans – to finance on-farm diversification
Agricultural diversification
In the agricultural context, diversification can be regarded as the re-allocation of some of a farm's productive resources, such as land, capital, farm equipment and paid labour, into new activities...

 projects and value-added agricultural operations beyond the "farm gate". In June 2001, the Farm Credit Canada Act changed FCC's name to Farm Credit Canada or Financement agricole Canada (FAC) in French.

In October 2008, Farm Credit Canada was named one of Canada's Top 100 Employers
Canada's Top 100 Employers
Canada's Top 100 Employers is an annual competition that recognizes the best places in Canada to work. First held in 1999, the project aims to single out the employers that lead their industries in offering exceptional working conditions and progressive human resources policies. Winners are...

 by Mediacorp Canada Inc, and was featured in Maclean's
Maclean's
Maclean's is a Canadian weekly news magazine, reporting on Canadian issues such as politics, pop culture, and current events.-History:Founded in 1905 by Toronto journalist/entrepreneur Lt.-Col. John Bayne Maclean, a 43-year-old trade magazine publisher who purchased an advertising agency's in-house...

 newsmagazine. Later that month, Farm Credit Canada was named one of Saskatchewan's Top Employers
Saskatchewan's Top Employers
Saskatchewan's Top Employers is an annual competition that recognizes the best places to work in Saskatchewan. Published annually since October 2005, the designation singles out the employers in the province that lead their industries in creating forward-thinking workplaces with progressive human...

, which was announced by the Saskatoon StarPhoenix and Regina Leader-Post
Regina Leader-Post
The Regina Leader-Post is the daily newspaper of Regina, Saskatchewan, Canada, and now a member of the Postmedia Network.The newspaper was first published as The Leader in 1883, by Nicholas Flood Davin...

 newspapers.

In December 2008, Farm Credit Canada was named one of Report on Business
Report on Business
Report on Business, commonly referred to as simply ROB, is the financial section of The Globe and Mail, a large Toronto-based Canadian newspaper. It is the most lengthy completion of economic news in Canada, and is considered an integral part of the newspaper...

 Magazine's Top 50 Employers in Canada featured in The Globe and Mail
The Globe and Mail
The Globe and Mail is a nationally distributed Canadian newspaper, based in Toronto and printed in six cities across the country. With a weekly readership of approximately 1 million, it is Canada's largest-circulation national newspaper and second-largest daily newspaper after the Toronto Star...

 newspaper.

Structure and functions

FCC is one of Canada's many Crown corporations; they report to the Parliament of Canada
Parliament of Canada
The Parliament of Canada is the federal legislative branch of Canada, seated at Parliament Hill in the national capital, Ottawa. Formally, the body consists of the Canadian monarch—represented by her governor general—the Senate, and the House of Commons, each element having its own officers and...

 through the Minister of Agriculture and Agri-Food
Minister of Agriculture (Canada)
The Minister of Agriculture is a Minister of the Crown in the Cabinet of Canada, who is responsible for overseeing several organizations including Agriculture and Agri-Food Canada, Canadian Dairy Commission, Farm Credit Canada, Canadian Food Inspection Agency, National Farm Products Council and...

. The corporation's board consists of up to 12 members, all appointed choices that require the approval of the governor-in-council. This control board regularly meets in the corporation's head office, which is located in Regina, Saskatchewan
Regina, Saskatchewan
Regina is the capital city of the Canadian province of Saskatchewan. The city is the second-largest in the province and a cultural and commercial centre for southern Saskatchewan. It is governed by Regina City Council. Regina is the cathedral city of the Roman Catholic and Romanian Orthodox...

. FCC has over 1100 employees, and six regional offices and 101 field and district offices across the country, primarily in rural Canada.

FCC can fund and deliver joint programs and services with federal agencies, provincial government
Provinces and territories of Canada
The provinces and territories of Canada combine to make up the world's second-largest country by area. There are ten provinces and three territories...

s and other term lenders. FCC’s operations are funded primarily through FCC Bond offerings, structured notes, institutional short-term notes, long-term programs and institutional debt. It raises money on the domestic and international markets.

The product portfolio for FCC includes a variety of intermediate and long-term loans, with amortization
Amortization (business)
In business, amortization refers to spreading payments over multiple periods. The term is used for two separate processes: amortization of loans and amortization of intangible assets.-Amortization of loans:...

periods as long as 29 years. As of March 2005, the corporation had a loan portfolio of 85,650 loans, with a total value of $11,150 million. http://www.fcc-fac.ca/en/aboutus/Profile/pdf/ar_2004_05_full_e.pdf

Seven key business lines

FCC helps customers with seven key business lines:

AgProduction:FCC is the leading provider of agricultural financing to primary producers across Canada.
AgValue:FCC agribusiness customers buy from and sell to primary producers. They are the equipment manufacturers, dealers, input providers, truckers and processors working within agriculture's value chain to transform raw commodities into food.
FCC Ventures:FCC offers venture capital and equity by investing in Canadian businesses which serve and advance agriculture.
Alliances:FCC partners with a variety of companies and co-operatives to provide financing to Canadian farmers, ranchers and growers who need crop inputs, equipment and livestock financing.
AgriSuccess:FCC helps customers enhance their management skills by offering agricultural business management training and publications.
AgExpert:FCC provides accounting and crop production software designed specifically for agriculture.
AgriAssurances:FCC protects individuals, their families and their operation with a full range of loan, life and accident insurance.
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