Farm Credit Canada (FCC)has received an enhancement to its capital base that will allow for an additional $5 billion in lending capacity, Marie-Claude Bibeau, minister of Agriculture and Agri-Food Canada announced today.
Minister Bibeau鈥檚 announcement follows Prime Minister Justin Trudeau鈥檚 announcement earlier today outlining more details on the Government of Canada鈥檚 plan to support the economy during the COVID-19 pandemic. In that announcement, the government made a solid commitment to the agriculture and food industry to ensure producers, agribusinesses and food processors continue to have access to necessary capital at this challenging time.
鈥淔armers and producers work hard to put food on tables across our country, and they should not have to worry about being able to afford their loan payments or having enough money to support their own families,鈥� the Prime Minister said. 鈥淲e are taking action now to give them more flexibility to meet the challenges ahead.鈥�
鈥淟ike many Canadians, I am truly grateful for our farmers and food business owners and employees, who continue working hard so we all have quality food on our grocery store shelves and kitchen tables. Their continued work is essential to our plan to manage COVID-19,鈥� Minister Bibeau said. 鈥淭he measures announced today will provide farmers and food producers across the country with important financial flexibility they will need during these challenging times.鈥�
鈥淚f you are a producer concerned about having the cash flow required to plant your crop, or you are a food processor feeling the impact of a lost sale due to the financial downturn, FCC is here to support you in these uncertain economic times,鈥� said Michael Hoffort, FCC president and CEO. 鈥淚t鈥檚 in times like these that we are reminded how important Canadian producers and food processors are to our nation and to feeding the world.鈥�
Hoffort adds that FCC will use its resources to find solutions that offer the best chance for recovery going forward so the industry emerges stronger. Initially, the focus will be on assisting the industry in addressing cash flow challenges so that businesses can remain focused on business-critical functions rather than worrying about how to access funds to keep operating through this difficult time.
鈥淪upporting the industry will also take strong collaboration between banks, credit unions, FCC and other financial institutions,鈥� said Hoffort. 鈥淔CC has served as a strong and stable industry presence for more than 60 years, and this current situation is no different. We will be working in partnership with other financial providers to offer the solutions needed by the agriculture and food industry to take on the challenges ahead.鈥�
As part of its ongoing support efforts, FCC聽also is asking existing customers who have cash flow or other financial concerns to contact the organization to discuss alternatives, such as loan payment deferrals and products available to assist with cash flow needs.
鈥淓ach business鈥� financial situation is unique, so there may be a combination of options considered,鈥� Hoffort said. 鈥淭he bottom line is that FCC is being supported by our shareholder to play a bigger role in supporting the success of the Canadian agriculture and food industry across Canada. The sooner we can discuss potential challenges, the more options we have.鈥�
Customers facing financial pressure are encouraged to contact their FCC relationship manager or the FCC Customer Service Centre at 1-888-332-3301 to discuss their individual situation and options.
