The government’s proposals to expand the powers of the Farm Credit Corp. have provoked a political debate about whether the crown corporation is straying too far from its original goal of supporting farmers.
Amendments to FCC legislation approved in principle last week by the House of Commons would expand the lending mandate of the Regina-based corporation, allowing it for the first time to lend to farm service companies even if farmers do not own them.
The Canadian Alliance caucus voted against the bill last week, in part because of what it sees as dilution of the FCC focus on farm financial needs.
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“I do not believe it is valid to extend Farm Credit Corp.’s involvement beyond farming operations,” said CA agriculture critic Howard Hilstrom.
FCC president John Ryan told MPs on the agriculture committee the FCC board has set $20 million as the maximum possible loan and it is restricted to lending only to small and medium-sized businesses.
Other amendments expected to be approved by summer:
- Changing the name from Farm Credit Corp. to Farm Credit Canada.
- Allowing the FCC to offer business services such as succession planning or land management to farmers, alone or in partnership with other businesses.
- Permitting
the FCC to offer
equity financing.
- Clarifying the corporation’s ability to offer lease financing to clients.
