The province has agreed to provide more money for cattle and sheep producers across Alberta to loan from the Feeder Association Loan Guarantee Program.
Eric Boot, chair of the Feeders Associations of Alberta, said the association has been asking for an increase from the Province for approximately five years.
“Previously, we’ve been running into (situations) where there wasn’t enough guarantee for demand for loans and what contributed to that was high cattle prices,” Boot said.
The overall loan guarantee for the program is being increased to $100 million from $55 million. Boot said the association asked for a $45 million increase to allow for future growth.
The last time the program was adjusted was in 2014 when the individual loan limit was increased from $500,000 to $1 million.
The loan is for producers who are buying and feeding livestock for numerous months before selling at market price. Boot said farmers can apply for loans through their local feeder association.
“They would be able to get the money at five per cent down versus banks that would require either hard assets or more money down,” Boot said. “It’s a great way for producers to get started in the feeding industry.”
He said the increase will mostly benefit beginner farmers or small to medium farms. There are currently 46 feeder associations across the province with 3,500 members.
Laura Poile, agricultural services officer with Rocky View County, said the increase is good news for local farmers.
“We know it’s good news for Rocky View producers and it will definitely help out the local feeders association,” Poile said.
The Feeder Association Loan Guarantee Program began in 1936 and has guaranteed $9 billion to livestock feeders across the province.
“The cattle and livestock industries are key drivers in Alberta’s rural economy and feeder associations are vital to the success of the industry,” Oneil Carter, Minister of Alberta Agriculture and Forestry said in a press release.
“This is the result of the productive discussions we have had with the industry. We are listening and making thoughtful changes to support producers.”
