Guelph, ON – Ontario beef farmers will now be able to purchase more cattle and expand their operations thanks to the Government of Ontario who announced a boost to 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 much needed 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.
"Strong cattle prices over the last eighteen months have deeply impacted our co-op members and their ability to maintain their herd sizes," explains 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."
"As an industry we are focusing on growth and developing programs that provide tangible benefits for our farmers and their families," states Bob Gordanier, BFO President. "I would like to thank Minister Leal and his bstaff for their efforts in moving this request forward. This program is important for our farmers, but it is equally important in that it encourages supply for our processing partners and for the growing consumer demand for beef."
“The increase in individual loan limits for farmers using the Feeder Cattle Loan Guarantee Program is a positive step forward for beef farmers in Ontario. This increased limit was a request by industry and is a result of growth across the beef sector over the past decade," shares Jeff Leal, Minister of Agriculture, Food and Rural Affairs. "This is another way the industry is continuing to grow and contribute to the Premier’s Agri-Food Growth Challenge of creating 120,000 new jobs by 2020.”
The successful Ontario Feeder Cattle Loan Guarantee Program was established in 1990 to provide lowinterest loans to beef farmers in the province through 18 local co-operatives. The program is backed by aprovincial government guarantee which has never been used in the program's 25 year history. Since its inception, the program has worked to support young and beginning farmers by providing a reliable source of credit at affordable rates with favourable repayment terms.
Source: OntarioBeef