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

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 isn’t releasing details of the review, but says it will report its findings to the departments of finance and agriculture.

Agriculture Minister Gerry Ritz says Farm Credit Canada is constantly under pressure from banks and credit unions to do less.

Ritz says he expects the corporation will continue to help Canadian agriculture and he predicts its role could expand in the future, but he doesn’t say how.

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