Nate Horner, Minister of Agriculture and Irrigation. (Government of Alberta)

By rdnewsNOW Staff

Increased To $150 Million

Government boosts support for competitive financing for producer-run co-ops

Dec 3, 2022 | 2:20 PM

Alberta’s government says it is increasing the total provincial loan guarantee to $150 million for cattle and sheep producers buying and feeding livestock for market.

Government officials say the Feeder Association Loan Guarantee Program helps local, producer-run co-operatives obtain competitive financing. The government says it provides an overall loan guarantee and this is being increased to $150 million from $100 million. This increase is expected to improve producers’ access to capital so they can grow their businesses and meet the demands of today’s marketplace.

“Feeder associations are essential to the province’s agriculture industry and our rural economy,” explained Nate Horner, minister of agriculture and irrigation. “We are increasing the feeder association loan guarantee to make sure Alberta’s livestock producers have access to capital they need to make it through the busy fall and winter. With cattle prices up 25 per cent, this increase will allow Alberta’s feeder associations greater access to low-interest capital loans.”

The government says 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 successful for more than 85 years, say government officials. A larger loan guarantee is said to be needed to reflect current cattle prices and greater demand for feeder cattle and to ensure eligible producers have access to the program.

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“The increase in the loan guarantee will help ensure sustainable growth in Alberta’s livestock feeding sector, giving our members better access to feeder cattle financing. This change improves the future for Alberta’s cattle feeders, and makes our industry more viable and accessible for new entrants and young farmers,” added Philipp Lammerding, chair, Feeder Associations of Alberta.

Alberta government quick facts

• The Feeder Association Loan Guarantee Program began in 1936 and has guaranteed $11 billion in private financing to Alberta livestock feeders.
• The program typically finances 17 to 24 per cent of the calf crop each year, providing a significant portion of the lending requirement for the industry.
• There are 45 local feeder associations and 2,000 livestock producers who are members of their local feeder associations in Alberta.