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.