NewsIndustryCanadian Government Enables FCC to Lend $5 billion More

Canadian Government Enables FCC to Lend $5 billion More


The following piece is from our sister publication, Alberta Seed Guide.

As the COVID-19 pandemic continues to unfold the Canadian government has provided Farm Credit Canada (FCC) with an additional $5 billion in lending capacity, Marie-Claude Bibeau, minister of Agriculture and Agri-Food Canada announced today.

Bibeau’s announcement comes following Prime Minister Justin Trudeau’s announcement earlier today outlining more details on the Government of Canada’s plan to support the economy during the COVID-19 pandemic. In that announcement, the government committed to providing necessary capital to the agriculture and food industry to ensure producers, agribusinesses and food processors are able to continue working.

Initially, FCC’s focus will be on assisting the industry in addressing cash flow challenges so businesses can remain focused on business-critical functions rather than worrying about how to access funds to keep operating through this difficult time.

“If 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,” Michael Hoffort, FCC CEO, says in a release.

As part of its ongoing support efforts, FCC is asking existing customers who have cash flow or other financial concerns to contact the organization to discuss alternatives. FCC has launched two programs with the new funding. Current customers can ask for payment deferrals of up to six months (where after they will have to cover the skipped payments). The organization has also enhanced their credit line to offer up to $500,000 loans. FCC loans are available to anyone in the agriculture industry along the supply chain from farmers to processors to agricultural input suppliers. 

The government has also given farmers who have outstanding payments due on or before April 30 for loans from the Advance Payments Program run by the Canola Council of Canada, a Stay of Default, which will give them an additional six months to repay the loan.

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.

More COVID-19 Coverage 

Business Allowed to Continue Despite Travel Restrictions 

Canadian Fertilizer Chain Flowing Smoothly Despite COVID-19

Virus Panic has Shoppers Stockpiling Fresh Potatoes 

Need Resources to Help You Tackle COVID-19?

Trending This Week

SLM Spud Farms

Experimenting with Regen Ag with on the Farm Agronomists

We try a little bit of everything when it comes to regenerative agriculture. With our production system it makes it easier to check off...
Potato pile fan

Condensation — Great on Icy Brews in Summer, Terrible in Potato Storage

Few things are more satisfying than sitting with a cold drink on a hot day. The same process that causes condensation on an icy...
Pile of garbage

Unnecessary Storage Waste Chewing into Revenue and Sustainability

If you could make a big step towards improving sustainability – both environmental sustainability and your farm business’ financial viability – what would make...
Potato School

Potato School – Is It On Your Calendar?

WHAT — Potato School is a half day, free-to-all virtual learning event hosted by TriCal Group for anyone in the potato business. Since soil-borne disease...
Blazing sun

Climate Change and Heat Stressed Spuds

The effect of rising temperatures due to climate change on potato production. As headlines during growing seasons repeatedly talk of record temperatures, potatoes are struggling...