Yes, I think it is a good idea. This financing would be aimed mainly at new businesses on a venture basis. There would be a statutory limit on the percentage Farm Credit Canada would be able to take. There would also be a fixed date by which the FCC would be required to sell its share back to the majority owners of the business.
Farm Credit Canada would be able to offer a range of business management services to producers across the country either directly or in partnership. These consulting and support services would include business and financial planning, risk management, succession and estate planning.
The FCC's ability to offer lease financing directly or in partnership with agriculture producers would be clarified. Farm Credit Canada would be able to create subsidiaries to enter into partnerships with other organizations and offer expanded financial services.
Just on that point, we heard from the Credit Union of Canada. It was generally supportive of the legislation. We heard a different approach from the Bloc member about caisses populaires, and perhaps it was true, but the Credit Union of Canada represents caisses populaires, as I understand it, and was generally supportive of the provisions contained in the bill.
The corporation would also have access to additional financial management tools to secure its portfolio and fund additional services. Overall the changes are positive so long as Farm Credit Canada continues to focus on primary production.
I mentioned that those who came before the committee were largely supportive. Let me read into the record a couple of their comments. The Canadian Federation of Agriculture said it had no objections to the legislation. The Credit Union of Canada, to which I referred a minute ago, said it had formed a committee to study the legislation. During the consultation process it fully supported the proposals as long as credit unions could participate in some of the new services, equity financing and partnerships.
Although the NFU is concerned that Farm Credit Canada will soften its focus on family farms and primary production, the government and Farm Credit have made a commitment that farming and the primary producer would continue to be the main focus of the corporation's work.
We were told that 94% of Farm Credit Canada's lending is directed to primary producers. An amendment to the act requires that the primary focus of the activities of the corporation shall be on family operations including family farms.
I will move to the recommendations before us today. There are three from the Alliance. One is on family farms. The Alliance amendment, as we understand it, would remove the references to family farms. We believe it is important that a reference to family farms be maintained in the definition of the corporation's purpose and primary focus. Therefore we oppose Motion No. 1.
On Motion No. 2 the Alliance remains consistent in opposing any FCC financial services that it feels might compete with the private sector. We heard the member for Crowfoot on that point a few moments ago.
In my opinion this would be detrimental to the agricultural community. A number of private lending institutions in rural Canada have recently gone out of business. Some of them have been taken over by smaller credit unions, at least their work and their mandate. There is not a lot of competition out there. There is not a lot of choice for farmers to secure a loan. We oppose Motion No. 2.
We also oppose Motion No. 3. The Alliance was concerned that FCC could acquire large blocks of land through acquisition, which would be harmful for private enterprise. John Ryan, the very well respected president and CEO of Farm Credit Canada, responded directly to the concern at committee by stating that it was not the corporation's intention to acquire blocks of land or be in the land management or land banking business.
He also noted that young farmers in Canada suggested that as long as there was this kind of leasing arrangement there would be an opportunity for intergenerational transfer and for new farmers to get on the land. We support the bill and we oppose the three Alliance recommendations.