Cattle feed program rejig, fiscal projections

EDMONTON Alberta’s feeder association loan guarantee program is getting a rejig to increase loan limits to $2 million, and grow the amount member associations can receive in advance based on the value of their livestock.

The program supports favourable lending rates for producers to buy, feed and sell their livestock. Government provides loan guarantees so cattle feeder associations can negotiate better lending rates from financial institutions.

The province says increased limits will let feeder associations distribute their fixed costs across a greater number of livestock and provide more access to capital while upping the maximum equity advance for risk-mitigated cattle and gives members of feeder associations access to more equity to generate cash flow.

ECONOMY IMPROVING: ATB

ATB Financial’s new economic outlook for Alberta, released Friday, shows a stable provincial economy that’s gradually making gains in the face of ongoing challenges, including uncertainty around oil transportation and a potential global slowdown. As a result, ATB is forecasting 2.1 per cent real GDP growth for Alberta in 2019.

The report found slow but inconsistent employment growth. But when it comes to oil, ATB found continued unpredictability around pipeline construction has created a surplus of western Canadian heavy oil. That glut has caused a low price resulting in restrained investment throughout the energy industry.

As a result, even though Alberta’s economy is improving, it’s at a more gradual pace than the average of the last 20 years.

Silver lining ? Interprovincial inmigration to Alberta has returned to modestly positive and the new trade deal with the United States and Mexico encourages development and provides greater clarity and certainty on trade.