Alberta is world-renowned for its top-quality beef production, a reputation owed in part to the hard work and dedication of feeder associations, who help livestock producers get financing to buy animals and grow their herds. As demand for Alberta beef continues to grow internationally, leading to higher prices, locally owned feeder associations are turning to the Feeder Associations Loan Guarantee Program (FALGP) for low-interest financing backed by a government guarantee.
The program has been so successful at helping livestock producers grow their businesses it has reached its previous limit of $150 million. To ensure it’s able to continue supporting producers, Alberta’s government is increasing the program’s overall limit to $225 million.
“Alberta is a beef province, and livestock is a huge part of our agricultural industry. Our cattle and sheep producers put food on tables in our province and around the world. Increasing the limit on Alberta’s loan guarantee program will ensure thousands of producers across the province have access to the capital they need to keep producing Alberta’s world-renowned beef.”
RJ Sigurdson, Minister of Agriculture and Irrigation
Meeting producers’ needs
FALGP helps local, producer-run cooperatives get competitive financing to ensure they can continue being a player in the global market. As beef prices continue to increase, the program will ensure producers have access to the capital needed to grow and diversify their operations.
Since its establishment in 1936, the program has provided more than $12 billion in loans.
“This increase in funding will see our 45 feeder associations across the province have access to funding that is critically needed to support Alberta’s livestock industry. Without this kind of support, our industry would be facing a dire shortfall in available lending at the local feeder associations across the province. The rapid escalation in the cost of livestock simply makes it unfeasible to operate at previous levels and the last thing we need is to see any pressure on overall beef numbers in the province.”
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