Province increases loan limit for feeders

Alberta’s government is raising the lending limit on the Feeder Associations Loan Guarantee Program (FALGP) from $150 million to $225 million.

The program provides low-interest, government-backed loans to local feeder associations. Since its establishment in 1936, FALGP has provided more than $12 billion in loans. The program typically finances 17 to 24 per cent of Alberta’s calf crop each year.

RJ Sigurdson, Minister of Agriculture and Irrigation, says increasing the limit by $75 million will allow producers to access capital needed to support production.

There are 45 feeder associations in the province that can use the program to offer financing to their members. The province says many feeders need the higher limit to grow and diversify their operations as cattle prices continue to climb to new record highs.

Feeder associations apply for funding through Alberta Agriculture and Irrigation. General information on the loan program is available on the Government of Alberta’s site: Feeder Associations Loan Guarantee Program.