RED DEER – Environmental risk management has become a buzzword among farm lenders.
Many of them, including the Farm Credit Corp., ask borrowers for an environmental checklist that addresses the level of risk on their farms.
“Most lenders are reviewing their practices in regard to the environment,” said FCC executive vice-president Louise Neveu.
She told the Alberta Agricultural Economists Association meeting in Red Deer that many lenders have policies to safeguard the environment and cover themselves against a potential mishap.
While Neveu said most demand environmental assessments, the FCC provides only a checklist to help farmers assess their operations.
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She said the corporation wants to make sure there are measures in place to mitigate risk rather than deal with it after the fact.
The checklist asks about manure management, potential for leaks and contamination, measures to protect groundwater, disposal of wastes like pesticides and oil containers, crop spraying activities, nuisance complaints, how discharge is handled and what kind of local permits are required.
She said lenders believe they have ethical and professional responsibilities to protect an investment in an environmentally sensitive situation.
FCC launched a new program in February to help finance environmental protection activities. Called the enviro loan, it could pay for such things as fencing, shelterbelts or methods to control soil erosion.
A similar program exists in Quebec to force producers to meet environmental standards. Producers receive a government grant to upgrade facilities for such things as manure handling and storage.
