Farm Credit Canada (FCC) is offering support to customers in British Columbia, Alberta, Saskatchewan and Manitoba facing financial hardship as a result of dry conditions that are impacting crop quality and grazing lands.
Crops are at a critical state with extremely dry and hot weather creating adverse conditions in parts of all four provinces. Depending on the area, quality and yield are expected to be significantly reduced by drought. Subsequently, feed is a major concern for livestock producers, particularly in the beef and dairy sectors.
For many producers, the lack of moisture since June of this year is an extension of multiple years of below-average precipitation. This has also created drought-related pest infestations for some, compounding the challenges.
As a result of the ongoing challenges preventing a productive harvest, producers may experience a cash shortfall, particularly in the fall and winter.
“Agriculture and food is the only industry we serve, so we have a deep understanding of the challenges that come with the business,” said Sophie Perreault, FCC executive vice-president of operations, in announcing the support for customers.
“We stand by our customers over the long term. This year’s dry weather in parts of British Columbia, Alberta, Saskatchewan and Manitoba has certainly been challenging for many producers,” said Perreault. “As a Crown corporation, we have a unique responsibility to partner with our customers and ease their financial stress where possible.”
FCC will work with customers to come up with solutions for their operations and will consider deferral of principal payments and/or other loan payment schedule amendments to reduce financial pressure on producers.
Although dry conditions are affecting Western Canada specifically, FCC offers flexibility to all customers through challenging business cycles and unpredictable circumstances on a case-by-case basis.
Customers in British Columbia, Alberta, Saskatchewan and Manitoba 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.
FCC is Canada’s leading agriculture and food lender, dedicated to the industry that feeds the world. FCC employees are committed to the long-standing success of those who produce and process Canadian food by providing flexible financing, AgExpert business management software, information and knowledge. FCC provides a complement of expertise and services designed to support the complex and evolving needs of food businesses. As a financial Crown corporation, FCC is a stable partner that reinvests profits back into the industry and communities it serves. For more information, visit fcc.ca.
(FCC News Release)