Lending & Insurance - Manitoba Agricultural Services .
Annual Report 2014/15Lending &InsuranceBuilding aStrong RuralManitoba
Table of ContentsTransmittal Letters. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2Chair’s Message. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4Vision / Mission / Values / Goals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6Corporate Governance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7Administration. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Corporate Structure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8Strategic Plan Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9Performance Indicators . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11Core Programs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Insurance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12Lending. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20Other Initiatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30Responsibility for Financial Statements. . . . . . . . . . . . . . . . . 31Auditor’s Report. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32Statement of Financial Position. . . . . . . . . . . . . . . . . . . . . . . . . 33Statement of Operations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34Statement of Change in Net Financial Assets. . . . . . . . . . . . 35Statement of Cash Flows. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36Notes to Financial Statements. . . . . . . . . . . . . . . . . . . . . . . . . . 37 Schedule 1: Schedule of Administrative Expenses . . . . . . 59Schedule 2: Schedule of Operations andAccumulated Surplus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60Office Locations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62Board of DirectorsFrieda Krpan (Chair)Larry BohdanovichBryan FerrissWilfred HarderAudrey HermanJonathan HildebrandSandy YanickExecutive ManagementNeil HamiltonPresident & CEOPaul BonnetVice President, Research & Program DevelopmentKevin CraigVice President, Lending OperationsJim LewisVice President, Finance & AdministrationCraig ThomsonVice President, Insurance OperationsLester VopniVice President, Corporate Services & General CounselThis annual report can be found onlineat masc.mb.ca.La version française de ce rapport annuelse trouve sur le site Internet masc.mb.ca.2014/15 Annual Report 1
The Honourable Janice Filmon, C.M., O.M.Lieutenant-Governor of Manitoba235 Legislative BuildingWinnipeg, ManitobaR3C 0V8Your Honour:I am pleased to submit the Annual Report of theManitoba Agricultural Services Corporation for thefiscal year ended March 31, 2015.Yours truly,Original signed byRon KostyshynMinister2 Manitoba Agricultural Services Corporation
The Honourable Ron KostyshynMinister of Agriculture, Food and Rural Development165 Legislative BuildingWinnipeg, ManitobaR3C 0V8Dear Sir:On behalf of the Board of Directors, I ampleased to submit the Annual Report of theManitoba Agricultural Services Corporation for thefiscal year ended March 31, 2015.Yours truly,Original signed byFrieda KrpanChair, Board of Directors2014/15 Annual Report 3
Chair’s MessageLooking back, 2014/15 might be seen as justan average year, but this would hide the year’shigh variability.For many producers in rural Manitoba, the year wasaverage. Growing conditions were typical, producingyields that were average or slightly better. For otherproducers, mainly in southwestern Manitoba, 2014will be remembered for the extreme excess moistureconditions. Over a million acres were left unseeded,with another 600,000 acres of crop destroyed byrainfall after seeding. Excess Moisture Insurance paidout 63 million – the second highest payout since theprogram’s inception in 2000. If not for this program,many producers would have found themselves in direfinancial straits.Manitoba producers insured a total of9.9 million acres in 2014, with AgriInsurancecoverage of 2.2 billion. Strong land values,combined with exceptionally low interest rates,resulted in a record 155 million in new loans.It is assuring to know that rural Manitobansput such trust in MASC’s programs.The introduction of livestock price insurancecouldn’t have happened at a better time, as reducedcattle inventories caused cattle prices to rise tounprecedented levels. In April 2014, MASC joinedforces with other western provinces to offer theWestern Livestock Price Insurance Program to cattleand hog producers. This innovative risk managementprogram gives producers an added level of securityshould livestock prices decline.4 Manitoba Agricultural Services CorporationForage and livestock producers benefited from anew suite of forage insurance options. Well-suitedto the needs of Manitoba farmers, almost 100,000additional acres of forage (53% more) were insured inthe first year of offering.To ensure that our products and services areresponsive and innovative, we rely on the supportand involvement of our stakeholders. Participationby the various producer and commodity groupsin meetings with our Board and staff is invaluable,as this process forms the basis of the researchand development of new programs and processes.The time and effort spent by these groups ismuch appreciated.As an organization that was formed by theamalgamation of two entities in 2005, MASCcontinues to realign its internal structures andprocesses to better serve our clients. This pastyear, MASC undertook a full review of its currentInformation Technology (IT) systems. The objective ofthe review was to assess how MASC’s IT should evolvein the future, to best position ourselves to meet thechallenges of electronic service delivery and everchanging technology. Continual improvement notonly in the products and services we offer, but theeffectiveness and efficiency in the way we deliverthem, will further benefit our clients.In November, MASC was named one of Manitoba’sTop 25 Employers for 2015. This is somethingthat I am very proud of, and in saying that, wantto acknowledge the relentless hard work of ourexecutive management and staff. This type ofrecognition is about leadership and commitmentof employees. MASC is honoured to have receivedthis distinction, and shall continue to uphold itscommitment of making MASC a great place to work.
The success of the agricultural industry has alwaysbeen tied to its ability to adapt, change and innovateaccording to market and environmental conditions.With this in mind, a review to evaluate existingagricultural programs and policies, includingAgriInsurance, was announced by Manitoba’sMinister of Agriculture, Food and Rural Developmentin January 2015. This initiative includes looking atinnovative solutions that will help farmers recoverfrom climate-related challenges such as flooding.MASC’s Board and staff look forward to supportingthis endeavor in the upcoming year.Lastly, I’d like to thank our Board members for theircontributions to MASC during their tenure. In thepast year, some long-serving members left us,including Carol Masse, Frank Fiarchuk, Harry Sotas,and our outgoing Chair, John Plohman. I’d like towelcome our new members: Jonathan Hildebrand,Audrey Herman and Larry Bohdanovich. I amconfident that their diversity and dedication will putMASC – and rural Manitoba – on a firm footing foryears to come.Whatever variability our rural communities mayexperience in 2015 and beyond, MASC looks forwardto being of continued service.Original signed byFrieda KrpanChair, Board of DirectorsOperational HighlightsFor the year ended March 31:AgriInsuranceInsured acres (millions)Total coverage (liability) ( 0Total premiums ( millions)258.4289.2233.2Total indemnities ( millions)177.594.4170.219.9119.832.15.14.94.3Net income ( millions)Hail InsuranceInsured acres (millions)Total coverage (liability) ( millions)850.8915.2809.7Total premiums ( millions)28.932.128.1Total indemnities ( millions)20.024.512.33.11.510.4Net income ( millions)BoarD of DirEctors (L TO R)Back Row: Wilfred Harder, Bryan Ferris, Jonathan HildebrandFront Row: Frieda Krpan, Audrey Herman, Sandy YanickMissing: Larry BohdanovichLendingNumber of loans approved1,015949978Amount approved ( millions)139.2130.4155.1Loan portfolio ( millions)384.6431.4483.310.812.212.0Net portfolio growth – loans (%)Number of guaranteed loans approved171174161Amounts approved ( millions)76.885.275.6286.0288.2286.4Guaranteed loan portfolio ( millions)ExEcutivE ManagEMEnt (L TO R)Back Row: Kevin Craig, Jim Lewis, Craig ThomsonFront Row: Paul Bonnet, Neil Hamilton, Lester Vopni2014/15 Annual Report 5
VisionA strong rural economy with successful farms and businessesMissionEnhance financial stability in rural Manitoba by providing riskmanagement solutions, lending options and other programs andservices to address emerging needsValues Innovation in developing programs and services Responsiveness in program delivery Excellence in customer service Consultation with client and government stakeholders Accountability in managing public funds Social Responsibility in balancing public policy and business objectives Employees in a productive and positive work environmentGoals Insurance provide programs that mitigate risk for the majority of farmers Lending assist farming and other rural businesses in accessing credit Other Programs and Services deliver emergency assistance and otherinitiatives that align with government priorities and inspection services Corporate carry on business effectively and efficiently6 Manitoba Agricultural Services Corporation
Corporate GovernanceMandate of the BoardBoard CommitteesMASC was established as a Crown corporation of theManitoba Government through the introduction ofThe Manitoba Agricultural Services Corporation Act.MASC’s Board of Directors is comprised of upto nine directors who are appointed by theLieutenant-Governor in Council, as are the Boardchair and vice chair.The following committees assist the Board ofDirectors in fulfilling its responsibilities:The Board is responsible for the overall stewardshipof MASC. It sets MASC’s strategic direction andorganizational objectives with the assistance ofExecutive Management, and provides final approvalof all applicable budgets.Board Strategic Planning and ReviewCommittee assists with strategic matters includingcorporate planning, communications, humanresources, and information technology.Board Audit and Finance Committee reviewsMASC’s financial reporting, risk management,actuarial and audit functions, and monitors corporateintegrity and compliance with applicable authorities.The Board also makes recommendations for futureprogramming to Manitoba’s Minister of Agriculture,Food and Rural Development, ensures that thecorporate governance policies by which MASCoperates are relevant and current, and is responsiblefor overseeing and monitoring corporate operationsaccording to applicable legislative requirementswithin acceptable levels of risk.2014/15 Annual Report 7
AdministrationMASC has a permanent staff of 144, complementedby part-time staff and 154 adjustors who areemployed as needed. MASC is represented by18 insurance and 15 lending offices located acrossthe province, with corporate offices in Portage laPrairie and Brandon.MASC reports to Manitoba’s Minister of Agriculture,Food and Rural Development (MAFRD), with theprovince’s contribution to MASC’s programmingrepresenting over 50% of MAFRD’s budget.An independent Appeal Tribunal hears disputesbetween insured producers and MASC respectingMASC’s assessment of insurance loss. The AppealTribunal’s decisions are final and binding onboth parties.With direction from the Manitoba Government’sinitiatives under The Sustainable DevelopmentAct, MASC encourages and facilitates day-to-day‘green’ business practices that conserve our naturalresources. MASC actively promotes teleconferencingand videoconferencing, and has significantly reducedits printed materials by replacing most internal papermanuals with digital versions, as well as offeringclients a digital version of insurance contracts. MASCis also increasing the opportunities for producersto use paperless web-based transactions, such asreporting their seeded acreage, harvested productionand carryover grain through MASC’s Online Services.Finally, software was purchased that will facilitatepaperless Board, Board Committee and ExecutiveManagement meetings.Corporate StructureAs of March 31, 2015:Minister of Agriculture,Food & Rural DevelopmentBoard of DirectorsPresident &Chief Executive OfficerNeil HamiltonVice President,Insurance OperationsCraig ThomsonVice President, Research &Program DevelopmentPaul BonnetVice President,Finance & AdministrationJim LewisVice President, CorporateServices & General CounselLester VopniVice President,Lending OperationsKevin CraigInsurance Projects,Sales & ServicePremium Rates &CoveragesFinancial ServicesCollections &RegulationsDirect LendingProgramsClaim ServicesAnalysis &ForecastingHuman ResourcesCommunications &PlanningLoan GuaranteeProgramsFarmland SchoolTax rnal Review& ComplianceLoan AdministrationInspectionServicesAgronomy Research& AdviceInformationTechnologyEmergency AssistancePrograms8 Manitoba Agricultural Services Corporation
Strategic Plan ReviewMASC’s vision of a strong rural Manitoba is achieved througha series of focused goals, as identified in its Strategic Plan.The following is a review of the associated actions implementedin 2014/15, along with the progress made toward MASC’s goals.The actions identified are considered to be new initiatives andare incremental to MASC’s ongoing day-to-day operations.Goal: Insurance – provide programsthat mitigate risk for the majorityof farmers In April 2014, the Western Livestock Price InsuranceProgram was rolled out in Manitoba, offeringlivestock price insurance to cattle and hogproducers. This program extends to all four westernprovinces. A total of 719 Manitoba producersparticipated in the first year of the program,representing 74.6 million in coverage on 51,109head of livestock. A new suite of forage insurance programs thatprovided more benefits and options for producersat a reduced cost resulted in a 53% increase ininsured forage acres compared to the previousyear. Along with the increases in coverage offeredby Forage Establishment Insurance and the ForageRestoration Benefit, forage producers had moreeffective insurance available to them in 2014. The higher dollar value options for Excess MoistureInsurance were increased to 25 and 50 per acreabove basic coverage, bringing the maximumavailable coverage for Excess Moisture Insurance to 100 per acre. During the 2014/15 year, MASC’s Research &Program Development Division worked on anumber of program proposals for the 2015crop year. The approved program changesinclude offering higher coverage for pedigreedsoybeans and increasing the grade guaranteefor oil sunflowers. Also, the Harvest Flood Optiondeductible for coarse hay was simplified byapplying a standard 20% deductible to all coarsehay claims (rather than increasing thedeductible after a claim). Work continues onhog mortality insurance. An assessment of the viability of the existingPasture Days Insurance Pilot Program wascompleted, with further consultation taking placewith producer groups. A comprehensive review of the OverwinterBee Mortality Insurance Program was initiatedto ensure the long-term financial stability ofthe program. MASC worked with other western provinces toevaluate reinsurance for the Western LivestockPrice Insurance Program.Goal: Lending – assist farmingand other rural businesses inaccessing credit In response to significantly higher livestock pricesover the past two years and projected longer termstrength in the cattle market, changes to MASC’sloan and guarantee programs were made to assistproducers with herd development and expansion.The interest-only period for financing bred heiferswas extended. Starting in 2015/16, the individualloan limit for Stocker Loans and Manitoba LivestockAssociations Loan Guarantees will be increasingto 500,000 (from 300,000), with the loan limitper feeder or breeder association increasing to amaximum of 8 million (previously 5 million).2014/15 Annual Report 9
Goal: Other Programs andServices – deliver emergencyassistance and other initiativesthat align with governmentpriorities and inspection services MASC administered the 2014 Portage DiversionFail-Safe Compensation Program and assistedMAFRD in the delivery of the 2014 CanadaManitoba Forage Shortfall and TransportationAssistance Initiative, both in response to springflooding. Administration of the 2011 floodprograms is almost complete. The Canadian Food Inspection Agency certifiedMASC as a licensed seed inspection provider,resulting in a service contract with the CanadianSeed Growers Association. As a result of a multi-departmental review oflivestock predation management practices, MASCpartnered with Manitoba Conservation and WaterStewardship to share data, enabling them toimprove the targeting of prevention activities.Goal: Corporate – carry on businesseffectively and efficiently An internet application for MASC’s soil classificationmaps was developed and made available tothe public. A number of web-based services were developedto enhance customer service and expediteadministrative processes, including an onlinepre-application process for a producer applyingfor AgriInsurance for the first time, and a loaninquiry tool that assists new clients in determiningwhich lending product best meets their needs. Inaddition, lending clients will have online access totheir account information, such as loan balancesand loan history, in early 2015/16. A common client database between lending andinsurance was developed that will provide clientswho are in both programs with one access point forall of their MASC business.10 Manitoba Agricultural Services Corporation MASC established a review process for theFarmland School Tax Rebate Program. The processoffered program applicants an opportunityto request a review to ensure their claim washandled appropriately in the first (transition)year of the legislated amendments. From thisreview, a number of issues were identified andrecommendations were put forwardfor consideration. An external review of MASC’s InformationTechnology systems was conducted. The objectivewas to review the current state of IT systems andprovide recommendations for the future evolutionof IT within MASC. An independent sales management consultantconducted a training session with insurance agentsand lending representatives, with a focus onbuilding client relations and enhancing customerservice. Cross training of staff between the lendingand insurance lines of business is ongoing. Board governance software was purchased thatwill streamline the way in which information issent to Board and Executive members, improvingsecurity and reducing the need for paper copies. The Sanford and Stonewall insurance offices, alongwith the Winnipeg office, were combined into oneoffice in Headingley to maximize efficiencies. Bothinsurance and lending services will be offered atthis common location. A comprehensive new graphic design was appliedto all corporate advertising materials, providing aconsistent updated look for easy recognition. The Board of Directors and staff met with16 producer gr
2014/15 Annual Report 9 MASC’s vision of a strong rural Manitoba is achieved through a series of focused goals, as identified in its Strategic Plan. The following is a review of the associated actions implemented in 2014/15, along with the progress made toward MASC’s goals. The actions identified are considered to be new initiatives and
Manitoba Education and Training Cataloguing in Publication Data Mental math : grade 12 essential mathematics ISBN: 978-0-7711-8029-3 (print) ISBN: 978-0-7711-8030-9 (pdf) 1. Mathematics—Study and teaching (Secondary)—Manitoba. 2. Mental arithmetic—Study and teaching (Secondary)—Manitoba. I. Manitoba. Manitoba Education and Training. 510.712
Group-lending villages Individual-lending villages Control villages Uvs Khovsgol Bulgan Khentii Ulaanbaatar Arkhangai Group-lending villages Individual-lending villages Control villages 04 The experiment Mongolia is the most sparsely populated country in the world and this makes disbursing, monitoring and collecting small loans very costly.
Repeal 3 The Manitoba Building Code, Manitoba Regulation 127/2006, is repealed. Abrogation 3 Le Code du bâtiment du Manitoba, R.M. 127/2006, est abrogé. Coming into force 4(1) Subject to subsection (2), this regulation comes into force on April 1, 2011. Entrée en vigueur 4(1) Sous réserve du paragraphe (2), le présent règlement entre en vigueur le 1 er avril 2011.
Figure 1: A screenshot of the Lending Club loan browsing page. The first question arises as a consequence of lending money through peer-to-peer platforms (through Lending Club in particular): Put simply, "What is that 'noise' in the data?" Lending Club provides a filtering system to quickly expedite the loan process; lenders can filter
analysis of Lending lub's database, as we wondered whether loan description had an impact on loan performance. To that end, we conducted a three-step analysis. First, we determined how accurate Lending . We were relatively impressed by how transparent Lending Club was regarding to its data policy: from its website, everyone can download .
Fair lending guarantees the same lending opportunities to everyone. Is there a law that protects my fair lending rights? Yes. The federal Fair Housing Act protects your fair lending. rights. The Oice of Fair Housing and Equal Opportunity. enforces the federal Fair Housing Act and state and local enforcement agencies enforce fair housing laws .
IV. Fair Lending — Fair Lending Scope and Conclusions Memorandum FDIC Compliance Examination Manual — February 2015 IV - 3. Examiner Summary: Describe the bank's method of underwriting (e.g., centralized, decentralized, manual, automated, etc.) noting whether discretion is permitted, how guidance is provided to lending staff, and how discretion is monitored.
Training Outline Reintroduction to Fair Lending Debunking the Eight Common Fair Lending Myths: -"Our written policies and procedures have us covered." -"Fair Lending is really about the underwriting process." -"Our bankers fully understand fair lending compliance." -"We don't have diversity in our market area."
