Farm Credit Canada

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Farm Credit Canada
University of Lethbridge February 11, 2008 Clem
Samson Dean Dunand Western Operations
Advancing the business of Agriculture
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Presentation Content

• FCC Overview
• Lending Products
• Employment Opportunities

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Federal Crown lender established in 1959100
offices and 1350 employees across

CanadaGlobe Mail - Canadas 7th Best
EmployerHead office in Regina
ABOUT FCC
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Our Mission
To enhance rural Canada by providing business and
financial solutions to farm families and
agribusiness
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49 Years of Serving Canadian Agriculture
- Max 10M/Customer - Agribusiness (owned by
farmer) - personal property lending
- Max 600,000/Customer - limited funding

Present
80s
97
70s
1959
- Max 40M/Customer - no primary producer
requirement for Agribusiness - flexible loan
products
- Max 25,000/Customer - full time farmer - 1
rate, 1 product - only real property
- lender of last resort - multiple rates
products
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Road to Success FCC is the leading business and
financial services provider to agriculture in
Canada.
Value Proposition We are agricultural
specialists providing our customers with
competitively priced, flexible debt financing,
equity and insurance as well as premium quality
software, training and information. These
services enable our customers to make sound
business management decisions and experience
greater success. We take the time to get to know
our customers, their individual needs, goals and
vision for the future. Were easy to do business
with. Agriculture. We know it. We love it.
Were in it for the long run.
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Overview of FCC Nationallyas at Dec 31, 2007

• 45,000 producers
• 96,863 loans
• Loans gt 14.5 Billion
• Market share 23.03
• 12 years of double digit growth
• Corporate growth YTD 16.2
• Western growth YTD - 19.4

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FCC Nationally (as at Dec 31/07)
PND by Enterprise
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Enhance Rural Canada
Customer Financial Success
AgExpert
Venture Capital
AgProduction
Alliances
Agri-Assurances
AgValue
AgriSuccess
FCC Solutions
Identify Customer Needs
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Loan Purposes

• Land / buildings
• Quota
• Equipment
• Livestock

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Specialized Loan Products

• Accelerator
• Pay Day
• Advancer
• Transition

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Accelerator Loan

• Features
• Low to zero down payment required
• disbursements made over time
• loan in 2 portions down payment and balance
• Low interest
• flexible payment options

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Accelerator Loan

• Benefits Buyer
• Low capital requirement / build equity over time
• Manageable payments/save on interest
• Competitive rates
• AgExpert Analyst software
• Benefits Seller
• no risk

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Payday Loan

• Use employment earnings to get started
• Features
• Low down payment
• Payment options tied to off-farm earnings
• Benefits
• Low down payment/fast approval
• Farm while youre employed off farm

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Advancer Loan

• Product Challenges - Ongoing capital
  requirements.
• Solutions- Financing thats ready when you are.
• Features / Benefits
• Pre-approved/Assurance of availability.
• Ability to convert whole/part to term loan
• Variable rate.
• Continual re-advancement.
• Flexible payment options.
• Interest on disbursed amount.
• Versatile loan.
• Land mortgage only

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Advancer LoanCompared To A Standard Amortized
Loan

• Loan example
• Loan amount 1,000,000
• 20 year amortization Annual payment
• Interest rate 6.0
• Annual Payment P I 87,822
• Advancer Loan Payment 60,900
• Added annual cash flow 26,922

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Transition Loan

• Product Challenges
• Limited Equity.
• Solutions
• Making retirement possible.
• Making farm ownership easier.

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Transition Loan Purchaser Benefits

• Minimum 10 down, can be gifted.
• Accelerated principal reduction.
• Substantial interest savings.
• Allows sale of farm as a complete package.

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Transition Loan Vendor Benefits

• Vendor receives 40 - 60 funds up front.
• FCC guarantees remaining disbursements.
• Potential tax advantages.
• Allows sale of farm as a complete package.

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Transition Loan Compared To A Standard Amortized
Loan
Sale 100,000 Loan amount 90,000 Vendors
initial payment 45,000 Year 2, 3, 4 ,5
11,250 / year
Principle Paid Conventional Mortgage
12,776. 22 equity position Transition Loan
18,563. 29 equity position
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Employment Opportunities

• What do we offer?
• Pure Agricultural focus
• Diversity in Agriculture
• Team environment
• Opportunities to move disciplines
• Opportunities to work across Canada
• Why FCC
• Competitive Salary/ Benefits
• Highly competitive rewards Programs
• Ongoing training and Career development

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Why FCC ??

• Agriculture! Its all we do
• Our expertise
• Our commitment to rural Canada
• Flexible and competitive

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Thank you!
Questions