26 FCC Reports Strong Performance in 2019-2020

FCC REPORTS STRONG PERFORMANCE IN 2019-2020

Farm Credit Canada (FCC) reported another year of strong financial performance last year, capping 27 consecutive years of growth and innovation in Canada’s agriculture and food industry.

“FCC continues to be a strong and stable presence in Canada’s agriculture and food industry, ready to support producers and processors in pursuing opportunities and overcoming challenges,” said FCC president and CEO Michael Hoffort, in releasing the corporation’s annual report.

“From the impact of adverse weather to market and supply chain disruptions caused by the COVID-19 pandemic, it’s important FCC continues to maintain a strong financial position to support those in Canada’s agriculture and food industry through these difficult times,” Hoffort said. “We are the only financial institution 100 per cent invested in agriculture and food and we are committed to ensuring the industry emerges from this difficult period even stronger.”

In 2019-20, FCC grew its portfolio by 6.6 per cent to $38.6 billion, a reflection of the strength of the agriculture and food industry and their ability to invest in their operations. The portfolio included payment schedule adjustments to nine per cent of the total amount owing compared to four per cent in the previous year. This increase was primarily due to pandemic-related support.

As part of the Government of Canada’s plan to support the economy from the sudden shock of the pandemic, FCC received an enhancement to its capital base that allowed for an additional $5 billion in lending capacity to support producers, agribusinesses and food processors through these uncertain times.

“Canadian farmers and food businesses have proven just how essential they are through COVID-19, and they will have a more vital role than ever to help lead our economic restart,” said Marie-Claude Bibeau, Minister of Agriculture and Agri-Food. “Working with Farm Credit Canada, our government is ensuring farmers and food businesses get the timely support they need both to get through the tough times, and to take advantage of new opportunities.”

“As Canadian food exports this year are already up over six per cent compared to last year, it shows the importance of the work we are doing to position ourselves for the stability and growth of our agriculture industry,” Bibeau added.

As part of FCC’s mandate, the corporation continues to invest in communities throughout rural Canada.

In 2019-20, FCC contributed $1.5 million to 94 website - www.nsfcanada.ca - to give Canada’s growing conjunction with its like-minded partners through the International Canadian office with access to NSF FCC Drive Away Hunger tour in support of food banks International’s global services dedicated to food safety across Canada. It also contributed to a variety of mental and quality. health initiatives aimed at promoting awareness, as well Evolving regulations across countries and increasing as providing training and support through partnerships complexities associated with a globalized food supply transfers of family farms, promoting greater diversity process development. added enterprises to build an even brighter future.” on the following services: supplier selection and regulatory compliance. Accurate • Net income of $632.6 million, to be reinvested in audits are the first step toward successful verification agriculture through funding new loans and developing of a company’s food safety system, providing improved agriculture knowledge, products and services for brand protection and customer confidence. Certifications agriculture industry, GFSI certification and management

• An allowance for credit losses level recognizing the accumulation of challenges in the Canadian agriculture and agri-food sector, including disruptions from COVID-19. NSF INTERNATIONAL FOCUSES ON in an even stronger position to support the industry through challenging times. With a $500 million CANADIAN FOOD INDUSTRY WITH NEW pandemic-related capital contribution from the Government of Canada in March, FCC was able to WEBSITE FOR SERVICES IN CANADA increase its lending capacity by $5 billion. Global public health organization showcases services for Canada’s growing and fast-changing food industry FCC continues to provide free learning opportunities

NSF International in Canada recently launched a new community projects across Canada through the FCC and complex food and beverage industry easy access AgriSpirit Fund, offered a wide range of free learning to the global public health organization’s expertise and events and raised an equivalent of 16.2 million meals in services in Canada. The website combines information on the depth, experience and capabilities of the NSF with the Do More Ag Foundation and 4-H Canada. network present challenges for NSF International clients in

Canada and around the world. The new Canadian website “Our role goes well beyond loan transactions,” Hoffort offers expertise and services to help companies navigate said. “We look forward to continuing our support for young and new entrants, enabling intergenerational these challenges, including certification and auditing, consulting, technical services, training and education, food and label compliance, packaging, and product and within the industry and supporting the growth of valueNSF International’s Canadian website provides information • FCC has maintained a strong capital position and is

and economic insights through events, web, social accredited International Association for Continuing media and various publications for all involved with the Education and Training (IACET) site. Topics include HACCP, industry. food safety and quality, GFSI benchmarked standards, regulations (including FSMA), food science, food packaging, Due to the COVID-19 pandemic, FCC will hold an food microbiology and ISO standards. Training modalities include eLearning, on-site, customized and open enrolment. online version of its annual public meeting on August 26. Details will be posted on the FCC’s website and a Additionally, the website includes information about full copy of the report can be found at www.fcc.ca/ management system registrations for the food, automotive, environmental, information security, medical devices, annualreport. aerospace and chemical industries, as well as for Ontario For more information, visit fcc.ca. Visit the new Canadian website at www.nsfcanada.ca to review the food safety services capabilities video, find a list of Canadian food experts, learn

YesGroup_CanadianMeatBusiness-Qtr-pg.pdf 1 2014-05-16 1:20:17 PM about upcoming events and global news releases, submit a question or read an FAQ.

OTHER 2019-2020 FINANCIAL HIGHLIGHTS INCLUDE: Certification & auditing: Third-party food safety audits and certifications, which are integral components of customers. and audits are available for animal and produce in the drinking water programs.

• A dividend of $394.8 million paid by FCC to the system registration. Government of Canada. Consulting: A full-service team approach providing technical resources, expertise and insight for a wide range of food safety and quality services. NSF International provides finished product inspection testing for food, packaging and non-food testing for rapid analysis and insight to protect the brand, technical support services from on-site temporary or permanent technical staffing placements, and various types of consulting.

Technical services: A one-stop solution for food product compliance and formulation, from concept to finished product, including food and label compliance, packaging, product and process development, and shelf-life and product evaluation.

https://www.yesgroup.ca