MASC is increasing its Operating Credit Guarantee Program
The Manitoba government is taking steps to assist farmers and other businesses affected by the ongoing trade war between Canada and the U.S.
On Aug. 28 the provincial government announced more than $100 million in tariff supports.
From an ag perspective, most of the supports come from changes to the Manitoba Agricultural Services Corporation.
“We understand how difficult it is for producers and financial institutions to take a risk in the face of uncertainty,” Agriculture Minister Ron Kostyshyn said during the announcement.
Here are the Manitoba Agricultural Services Corporation components of the announcement.
- The Operating Credit Guarantee Program (OCGP) will increase to $3 million.
- The guaranteed portion of loans under the OCGP and the Diversification Loan Guarantee Program (DLGP) will increase to 33.33 per cent from 25 per cent.
- Expanded eligibility in DLGP will allow for “investment in primary agricultural infrastructure in Manitoba.”
- Increasing the loan amount in the DLFP to $5 million from $1 million.
- Working with honey producers on targeted supports for the sector.
Honey was included in America’s latest round of tariffs on Canada.
Jill Verwey, president of Keystone Agricultural Producers (KAP), attended the announcement.
The organization is pleased the provincial government is coming to the table with support measures during a pivotal time for farmers.
“KAP will keep working with the department (of agriculture) and the minister’s offices as these details take shape,” she said during the press conference. “KAP is also working closely with the government to ensure that any support for producers is timely and structured.”
The broader tariff support package for Manitoba is as follows:
- $50 million for the Manitoba Trade Resilience Loan Program to provide repayable working capital financing at low interest rates;
- $500,000 increase in the Export Support Program
- $250,000 to enhance existing export advisory services to support export readiness and market development
- $500,000 to the Canadian Manufacturers and Exporters to expand the Made-in-Manitoba initiative
- $500,000 to support interprovincial trade missions for Manitoba alcohol producers and craft breweries;
- $13.7 million to establish a Tariff Workforce Stabilization and Youth Employment Program to provide wage subsidy supports to employers
- allowing businesses to defer provincially administered tax payments such as retail sales tax and payroll tax payments in respect of the period of Sept. 1 to Dec. 31, 2026.