Ontario Doubles Feeder Cattle Loan Limits

Ontario beef farmers will now have access to double the individual loan limits under the Ontario Feeder Cattle Loan Guarantee program.

For the purchasing of feeder cattle, new members who are enrolled in the program are now able to access a loan for up to $100,000 (an increase of $50,000), and existing members are now able to access a loan for up to $500,000 (an increase of $250,000). The Beef Farmers of Ontario administers the Feeder Cattle Loan Guarantee Program on behalf of the Ministry of Agriculture, Food and Rural Affairs

The increases will provide new farmers with greater access to affordable financing, and existing farmers will have the financial stability to expand their operations and make new investments both of which will significantly contribute to the health of Ontario’s beef industry, according to the Beef Farmers of Ontario.

“Strong cattle prices over the last eighteen months have deeply impacted our co-op members and their ability to maintain their herd sizes,” says Reg Campbell, Feeder Finance Cooperative President. “The increase in individual loan limits will certainly be welcomed by our 900 members. Two years ago, we could secure financing for 240 head of cattle within the program’s loan limits, whereas at today’s prices the loan limits would only allow for the purchase of 160 head of cattle.”

The Ontario Feeder Cattle Loan Guarantee Program was established in 1990 to provide low-interest loans to beef farmers in the province through 18 local co-operatives. In 2014, more than 41 per cent of co-operative members were under the age of 40.

For more information on the Ontario Feeder Cattle Loan Guarantee Program visit www.ontariobeef.com

 

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