Funding will increase by $50 million to $150 million
By Diego Flammini
Alberta is providing additional support to the livestock sector.
The provincial government is increasing its support for the Feeder Association Loan Guarantee Program from $100 million to $150 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, Alberta’s minister of agriculture and irrigation, the Red Deer Advocate reported. “With cattle prices up 25 per cent, this increase will allow Alberta’s feeder associations greater access to low-interest capital loans.”
Alberta introduced the Feeder Association Loan Guarantee Program in 1936 during the Great Depression in 1936. It has guaranteed about $11 billion in financing to Alberta livestock feeders in that time.
It provides capital to farmers through low interest, leveraged financing backed by a government guarantee.
The program typically finances between 17 and 24 per cent of the calf crop each year, providing a significant portion of the industry’s lending requirement, Alberta Agriculture says.
To be eligible for financing, a farmer must be at least 18 and approved by a local feeder association.
This additional support from the government will help the livestock sector, said Phillip Lammerding, chair of the Feeder Association of Alberta.
“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,” he said.