Press release

Québec City, July 14, 2010 – Claude Béchard, Minister of Agriculture, Fisheries and Food, Minister Responsible for Canadian Intergovernmental Affairs and the Reform of Democratic Institutions, Deputy Government House Leader and Minister Responsible for the Bas-Saint-Laurent region, is pleased to announce, on behalf of the Québec government and in collaboration with its partners, Capital régional coopératif Desjardins and Fonds de solidarité FTQ, the creation of a $75 million investment fund for the next generation of farmers (FIRA) provided for in the 2010-2011 budget speech. 

“By signing this agreement today, the Québec government is kicking off an innovative solution for the next generation of farmers. FIRA will help support young Quebecers who want to make a career out of agriculture,” stated Minister Béchard. 

It takes a lot of money to start a farm business and creates a big obstacle for young people from non-farming backgrounds who want to run their own business. “Our goal is to offer the next generation with the means to finance their projects so they can get their business up and running. We want young farmers to be successful, and FIRA is a unique, novel addition to the array of tools currently available for young farmers,” continued Minister Béchard.

“As Québec’s leader in agricultural financing, Desjardins Group was pleased to align itself with Capital régional et coopératif Desjardins (CRCD) to create FIRA. With its contribution of $25 million, the CRCD is supporting what will become a cornerstone of agriculture development in Québec in the coming decades, in other words, diversification. Not to mention that this is an additional financial tool that will help ensure the survival of our farming businesses and encourage the next generation to step in,” stated Desjardins Venture Capital COO and CRCD manager Marie-Claude Boisvert.

“FIRA is a good way to encourage Québec agricultural entrepreneurship, and by extension, create and maintain jobs, two factors consistent with our mission and that affect Québec’s economic development. The Fonds de solidarité FTQ is very proud to be associated with this fund, to which it will contribute $25 million. At a time when the price of farmland is rising, our patient capital offers real added-value for young graduates and future owners,” said in turn Gaétan Morin, Executive Vice-President, Investments, Fonds de solidarité FTQ.

The creation of this investment fund is a concrete answer to the demands of the Fédération de la relève agricole du Québec (FRAQ) and is part of the Youth Policy action plan of the ministère de l'Agriculture, des Pêcheries et de l'Alimentation. “FIRA is not only a boon for young farmers, it is especially so for the farming profession as a whole, helping to ensure its survival,” asserted FRAQ president Férdéric Marcoux.

The Québec government, the Fonds de solidarité FTQ and Capital régional et coopératif Desjardins are each contributing $25 million. FIRA will be managed by a limited partnership, with the three partners involved in its management. Due to its expertise, La Financière agricole du Québec will be the government’s representative. FIRA’s investments will mainly take the form of subordinated loans with occasional equity financing and land purchases by FIRA for lease to young farmers. The measures offered to young Québec farmers are by far the most generous in North America.

The terms and conditions of the investment fund will be announced in the fall when the fund is scheduled to begin operation.

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