The Ontario government is increasing loan limits for the Feeder Cattle Loan Guarantee Program from $500,000 to $1 million for individual co-op members, and up to $1.5 million for corporations that participate in feeder cattle co-operatives. The government says the increase applies to “experienced” individuals and corporations only.
The loan guarantee is designed to help beef farmers better manage fluctuating production costs and market volatility as they work to expand their businesses. This announcement will ensure the sector retains the knowledge and expertise of experienced farmers, Ontario says.
“Our beef farmers work tirelessly each day producing world class products and playing a vital role in our food supply chain,” says Minister Lisa Thompson, Minister of Agriculture, Food and Rural Affairs. “These improvements to the Feeder Cattle Loan Guarantee Program build on a series of enhancements our government has put in place to support our beef farmers and the agri-food supply chain. It’s important that we keep listening to the needs of these agri-food heroes and give them the tools they need to help lead our sector.”
The Beef Farmers of Ontario will assist in delivering the program.
“This is an important program that provides affordable and accessible financing options for many younger members who represent the future of our industry. An increase in the loan limits will help ensure financing limits keep pace with the price of cattle and in turn, maintain the program’s relevancy and benefits for Ontario’s cattle feeding sector,” says Rob Lipsett, president of Beef Farmers of Ontario.
There are 759 members enrolled in the Ontario Feeder Cattle Loan Guarantee Program, including 15 co-ops.