Since August 1, 1978, the Farm-Loan Insurance and Forest-Loan Insurance Fund (FAPAF) guaranteed repayment to lenders for losses resulting from farm and forest loans granted in the framework of the legislation and programs administered by La Financière agricole du Québec.

However, on June 8, 2011, the Québec National Assembly adopted An Act to abolish the Ministère des Services gouvernementaux and to implement the Government's 2010-2014 Action Plan to Reduce and Control Expenditures by abolishing or restructuring certain bodies and certain funds. Among other things, this legislation abolished FAPAF and transferred its activities to La Financière agricole.

On October 1, 2011, the Farm-Loan Insurance and Forest-Loan Insurance Fund was replaced by a financial commitment repayment guarantee. The amounts held in FAPAF were paid into an account exclusively dedicated to the payment of losses. La Financière agricole is currently working on developing a program that will replace the Rules for implementing FAPAF.

Transitional provisions stipulate that, “The Rules for implementing the Act respecting farm-loan insurance and forestry-loan insurance (R.S.Q., chapter A-29, r. 1) will continue to apply until they are replaced by a program established by La Financière agricole du Québec […].”

As of March 31, 2011, the Fund posted a surplus of $64.5 million, along with assets worth $166 million. In addition, the portfolio of loans and credit lines guaranteed by the fund stood at $4.3 billion. Over the fiscal period, the Fund paid financial institutions some $15 million ($14 million in 2010) for losses with regard to 111 loans and 14 credit lines (129 loans and 6 credit lines in 2010), as guarantees. The rate of loss on all outstanding guaranteed loans was 0.35% (0.32% in 2010). La Financière agricole therefore compares favourably to other financial institutions in that regard.