Individual and joint membership loans are being increased within Alberta’s Feeder Associations Guarantee program, the provincial government has announced. Producers will now be able to access $2 million versus the previous $1 million limit, under the guaranteed loan program.
Announced changes also allow an increase in the amount member associations can receive in advance, based on the value of their livestock.
“Feeder associations in Alberta are facing challenges in accessing the capital they need. We have the backs of our producers — that’s why we are introducing these amendments,” says Oneil Carlier, Minister of Alberta Agriculture and Forestry. “With this move, we are showing a prime example of our government’s responsiveness to industry and commitment to supporting the evolving needs of rural businesses.”
Other changes added in this announced change include increases to the maximum equity advance for risk-mitigated cattle, from 50 per cent to 75 per cent. This gives members of feeder associations access to more equity to generate more favourable cash flow for their operations, the province says.
“We are pleased that government has moved forward with these changes,” says Eric Boot, chair, Feeder Associations of Alberta Limited. “Our members will have greater flexibility to operate. They will have increased access to capital which will help in making their operations more robust and responsive to increased demand for feeder cattle.”
The loan guarantee program supports favourable lending rates for producers to buy, feed, and sell their livestock. The government provides loan guarantees so cattle feeder associations can negotiate better lending rates from financial institutions.
