Farm Credit Canada (FCC) has announced that it is offering support to customers in British Columbia, Alberta, Saskatchewan and Manitoba that have faced financial hardship due to dry conditions which have impacted crop quality, according to a release.
All four provinces have experienced dry and hot weather during the crops’ critical states. Quality and yield are projected to be impacted by the drought.
This lack of moisture is not new, as past years have seen below-average precipitation levels. The drought has also caused pest infestations for some producers.
The weather challenges could cause producers to be in a cash shortfall this 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 is looking to work with customers to determine solutions for their operations. According to the release, FCC “considers deferral of principal payments and/or other loan payment schedule amendments to reduce financial pressure on producers.”