“The cattle and livestock industries are key drivers in Alberta’s rural economy, and feeder associations are vital to the success of the industry. This is the result of the productive discussions we have had with the industry. We are listening and making thoughtful changes to support producers.”
“The increase in the loan guarantee will help secure the sustainability of the livestock feeding sector in Alberta, resulting in improved access to feeder cattle financing for all of our existing members, future new members and young farmers. Thanks to this change, the future of Alberta Feeder Associations will be greatly improved.”
The Feeder Association Loan Guarantee Program supports local, producer-run co-operatives in obtaining competitive financing. Government provides an overall loan guarantee and this is being increased to $100 million from $55 million. This increase will improve producers’ access to capital so they can grow their businesses and meet the demands of today’s marketplace.
Feeder association members use the guarantee to secure capital from lending institutions to buy beef calves and sheep to be fed for a number of months before being sold at market.
The program has been highly successful for 80 years. A larger loan guarantee is needed to reflect current cattle prices and greater demand for feeder cattle and to ensure that eligible producers have access to the program.
- The Feeder Association Loan Guarantee Program began in 1936 and has guaranteed $9 billion in private financing to livestock feeders.
- Member producers buy about 15 to 25 per cent of available calves each year.
- There are 46 local feeder associations and 3,500 livestock producers who are members of their local feeder associations in Alberta.