Loan Guarantees (A Total of 252 Guarantees on Loans of the Total Agriinsurance Indemnities of $147 Million
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Table of Contents Transmittal Letters ............................................................................................................................................................................................................ 2 Chair’s Message ................................................................................................................................................................................................................. 4 Vision/Mission/Goals ........................................................................................................................................................................................................ 6 Corporate Governance ...................................................................................................................................................................................................... 7 Administration ................................................................................................................................................................................................................... 8 Organization Chart ............................................................................................................................................................................................................ 8 Strategic Plan Review ....................................................................................................................................................................................................... 9 Performance Indicators ..................................................................................................................................................................................................11 Current Programs ............................................................................................................................................................................................................12 Insurance ........................................................................................................................................................................................................................12 Lending ...........................................................................................................................................................................................................................18 Other Initiatives ...............................................................................................................................................................................................................24 Financial Statements ......................................................................................................................................................................................................27 Responsibility for Financial Statements ............................................................................................................................................................................28 Auditors’ Report ...............................................................................................................................................................................................................29 Consolidated Balance Sheet .............................................................................................................................................................................................30 Consolidated Statement of Operations and Funds Retained ..............................................................................................................................................31 Consolidated Statement of Cash Flows .............................................................................................................................................................................32 Notes to Financial Statements ..........................................................................................................................................................................................33 Schedule 1 – Statement of Operations and Funds Retained .............................................................................................................................................50 Schedule 2 – Consolidated Schedule of Administrative Expenses .....................................................................................................................................52 Offi ce Locations ...............................................................................................................................................................................................................53 Board of Directors Executive Management John Plohman (Chair) Neil Hamilton – President & CEO Frieda Krpan (Vice Chair) Charlene Kibbins – Senior Vice President, Lending Operations Harry Sotas (Vice Chair) Craig Thomson – Vice President, Insurance Operations Frank Fiarchuk Lester Vopni – Vice President, Corporate Services & General Counsel Bryan Ferriss Paul Bonnet – Vice President, Research & Program Development Wilfred Harder Jim Lewis – Vice President, Finance & Administration Carol Masse Sandy Yanick This annual report can be found online at masc.mb.ca La version française de ce rapport annuel se trouve sur le site Internet masc.mb.ca 2009/10 ANNUAL REPORT 1 Minister of Agriculture, Food and Rural Initiatives Room 165 Legislative Building Winnipeg, Manitoba, CANADA R3C 0V8 The Honourable Philip S. Lee, C.M., O.M. Lieutenant-Governor of Manitoba 235 Legislative Building Winnipeg, Manitoba R3C 0V8 Your Honour: I am pleased to submit the Annual Report of the Manitoba Agricultural Services Corporation for the fi scal year ended March 31, 2010. Yours truly, Original signed by Stan Struthers Minister 2 MANITOBA AGRICULTURAL SERVICES CORPORATION The Honourable Stan Struthers Minister of Agriculture, Food and Rural Initiatives 165 Legislative Building Winnipeg, Manitoba R3C 0V8 Dear Sir: On behalf of the Board of Directors, I am pleased to submit the Annual Report of the Manitoba Agricultural Services Corporation for the fi scal year ended March 31, 2010. Yours truly, Original signed by John S. Plohman Chair, Board of Directors 2009/10 ANNUAL REPORT 3 Chair’s Message As Manitobans, we pride ourselves on our enduring nature, to face hardships beyond our control with a presence of mind that we will again rise to meet the challenge. At MASC, we are proud to support this notion of perseverance. ‘Lending and Insurance - building a strong rural Manitoba’ isn’t just corporate branding, but an assertion of MASC’s role in rural Manitoba. When conditions prove diffi cult, we administer support to those directly aff ected, and in favourable times we build on previous accomplishments to help strengthen Manitoba’s rural backbone. The past year saw MASC serving in both building and MASC’s risk management strategy continues to include supportive roles. In 2009, MASC’s AgriInsurance program the purchase of private reinsurance for AgriInsurance provided over $18 million of indemnities to producers and Hail Insurance. In 2009/10, reinsurance for these in the Interlake and Westlake areas. To assist with the two programs provided over $216 million in protection back-to-back losses in this area, MASC worked with the against catastrophic losses. Having reinsurance governments of Manitoba and Canada to deliver three programs in place stabilizes premium rates from year emergency assistance programs that together put over to year, protects provincial and federal treasuries from $19 million into the hands of these producers. MASC unnecessary fi nancial shocks, and maintains reasonable has grown into an eff ective and effi cient delivery agent reserve funds, thereby helping to keep premium rates for these types of emergency assistance programs, and low. Owing to good results over the past few years, MASC perhaps one reason for our success in this role is our keen successfully negotiated reinsurance rate reductions for understanding of rural Manitoba. the 2010/11 AgriInsurance and Hail Insurance programs of 6% and 10%, respectively, reducing the total annual cost Elsewhere in Manitoba, producers generally harvested of reinsurance by over $2 million. above average yields on most crops, and MASC continued to deliver and expand on its regular complement of MASC’s lending operations experienced a moderate increase programming. The AgriInsurance program provided in activity in 2009/10. Commitment to Manitoba’s young coverage on over 9.0 million crop acres and provided farmers continued through our Bridging Generations excess moisture insurance indemnities on an additional Initiative, with almost $1.8 million provided through Young 400,000 acres. AgriInsurance coverage surpassed Farmer Rebates and Management Training Credits, with 75 $1.7 billion in 2009/10, the second-highest level in its history. young producers taking advantage of the associated fl exible lending options (90% fi nancing and interest-only loans). Lack of seasonal heat was problematic in some areas, Excluding the $40.3 million provided in 2008/09 through the particularly for crops such as corn and sunfl owers. Winter emergency Manitoba Hog Assistance Loans program, MASC’s wheat crops also experienced signifi cant damage due to direct lending experienced slightly higher activity in 2009/10 winter kill. Losses for these crops, together