Feeder associations in Alberta will soon be able to obtain more competitive financing to meet current market demands.
The provincial government is increasing the overall loan guarantee for beef and sheep producers purchasing livestock for feeding to $150 million.
Created to help producer-run feeder co-operatives secure financing, the Feeder Association Loan Guarantee Program previously provided an overall loan guarantee of $100 million.
“We are increasing the feeder association loan guarantee to make sure Alberta’s livestock producers have access to capital they need to make it through the busy fall and winter,” said Nate Horner, Minister of Agriculture and Irrigation.
“With cattle prices up 25 per cent, this increase will allow Alberta’s feeder associations greater access to low-interest capital loans.”
Members of Alberta’s 45 local feeder associations can use this guarantee to access financing from lenders to purchase beef calves and sheep for feeding.
“The increase in the loan guarantee will help ensure sustainable growth in Alberta’s livestock feeding sector, giving our members better access to feeder cattle financing,” said Feeder Associations of Alberta Chair Philipp Lammerding.
“This change improves the future for Alberta’s cattle feeders and makes our industry more viable and accessible for new entrants and young farmers.”
Since its creation in 1936, the Feeder Association Loan Guarantee Program “has guaranteed $11 billion in private financing to Alberta livestock feeders,” according to a press release by the Ministry of Agriculture and Irrigation. Each year, this program finances about 17 to 24 per cent of the province’s calf crop.