Latest News

The Canadian Press - ONLINE EDITION

Ottawa asks financial regulator to conduct risk review of Farm Credit Canada

By: The Canadian Press

Posted: 03/7/2013 12:49 PM | Comments: 0 | Last Modified: 03/7/2013 4:57 PM

Agriculture Minister Gerry Ritz responds to a question during question period on Parliament Hill in Ottawa on Thursday November 29, 2012. THE CANADIAN PRESS/Sean Kilpatrick

The federal government has asked Canada's financial regulator to do a risk assessment of Farm Credit Canada.

The Crown corporation has loans to farmers and agribusinesses worth more than $25 billion and its loan portfolio has grown for 20 consecutive years.

The Office of the Superintendent of Financial Institutions (OSFI) isn't releasing details of the review, but said it would report its findings to the departments of finance and agriculture.

Agriculture Minister Gerry Ritz said producers are being well served by Farm Credit Canada, which has been criticized by private lenders.

"They are constantly under pressure from the chartered banks and credit unions to do less, not more," Ritz said from Tokyo.

"I'm here to say very publicly that I expect Farm Credit (Canada) to continue to play the dynamic role they play in the farm sector."

Ritz said it is possible the FCC's role in agriculture could expand in the future, but he didn't say how.

He praised the FCC for growing its business without any government financial guarantees.

"We want to assure Canadians that even in doing that they don't have money at risk."

Along with loans, the FCC provides producers with insurance, software, learning programs and other business services.

The corporation said it follows sound business practices, is financially self-sustaining and pays dividends to the federal government.

"Government entities are routinely examined as part of proper oversight," Trevor Sutter, an FCC spokesman, said in a prepared statement from Regina.

"Our risk models indicate the level of risk on new loans and the strength of the overall portfolio has never been better."

The corporation said 87 per cent of the loans it granted in 2011-2012 were to farmers.

The finance department provided a brief statement when asked to explain the reasons for the risk assessment, simply calling it a responsible, prudent and routine action that is part of proper oversight.

Last year the federal government placed the Canada Mortgage and Housing Corp. under the authority of OSFI because of its growing role in the financial sector.

— By John Cotter in Edmonton

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories? Please use the form below and let us know.

* Required

In which story did you find the error? *
Please post the headline of the story or the title of the video with the error.
What was the error? *
Please post exactly what was wrong with the story.
What should we have written?
Please indicate your source for the correct information.
Who else should we interview to improve this story?
Please include any contact information you may have.
Can we contact you in the future for advice on stories about this topic?
Yes

No
First Name: *
Last Name: *
E–mail Address: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Phone: *
This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.
Colour:
Are you blue? If you can see this, leave it blank and get some CSS support.
Enter the words that you see: * This is to prevent our forms from being filled out automatically.
You have failed to correctly identify the words in the box above. Please try again.

More Latest News

Undock

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.