Good afternoon, Mr. Chair and members of the committee. Thank you for inviting me to join you today.
My name is Jean-Philippe Gervais. I'm the executive vice-president of strategy and impact and chief economist at Farm Credit Canada, or FCC.
FCC is a federal Crown corporation committed to the Canadian agriculture and food industry. With a loan portfolio of over $50 billion, we support 102,000 customers through over 2,300 employees and 103 offices across the country. We provide financial services, as well as advisory services, management software and knowledge sharing to the industry.
FCC provides broad support to customers in the horticultural industry, which is comprised of greenhouse, field vegetables and fruit sectors. As of March 31, FCC’s total horticulture portfolio was 3,576 customers with $4.77 billion of total owing. This represents 6.3% of FCC’s overall customer base and 9.4% of our portfolio balance. Regionally, British Columbia, Ontario and Quebec contribute the largest amount to the horticulture industry.
Recent production challenges across the country have impacted FCC customers and the industry. The greenhouse sector has experienced disease outbreaks, which, combined with a tighter profitability environment because of elevated interest rates and input costs, have led to an increase in impaired loans in the sector. In the fruit sector, adverse weather conditions and high input costs as well have led to increases in impaired loans. Overall, these financial challenges are not currently significant at our portfolio level and represent less than 5% of the total owing by the greenhouse and fruit sectors.
FCC is currently offering additional support to fruit and wine sector customers in B.C. who are facing financial hardship as a result of prolonged cold temperatures over the winter and the significant resulting damage to wine vines and fruit trees across the province. In addition, last summer's severe drought and wildfires adversely affected tourism, a critical source of revenue for many wineries in the region. Our 2023 adverse weather customer support program has been in effect since last July.
Customer support is a central part of FCC's business, and we consider a variety of credit and deferral options to reduce the financial pressures on producers. We also provide knowledge to help producers make informed business decisions. For example, we will be releasing the 2023 FCC fruit land value analysis tomorrow, on May 8.
Ontario orchard and tender fruit growers, the majority of whom are in Niagara, are witnessing a period of robust crop quality and strong fruit prices, and the Quebec apple market remains stable. In the Atlantic region, there has been a persistent issue of excess supply in fruit, particularly with wild blueberries, which is straining the market. This demonstrates the wide regional disparity in the horticulture industry, specifically in fruit production.
FCC is committed to not only supporting our customers through these adverse events, but helping all affected persons become more resilient and disaster-resistant in the future.
Thank you for your time. I look forward to answering any questions you may have.