Sup­port for growth in Al­berta’s live­stock sec­tor

The McLeod River Post - - Family, Farm & Garden -

Changes are be­ing made to Al­berta’s Feeder As­so­ci­a­tion Loan Guar­an­tee Pro­gram to help sup­port com­pet­i­tive­ness and growth in Al­berta’s live­stock in­dus­try. The Feeder As­so­ci­a­tions Guar­an­tee Reg­u­la­tion is be­ing amended to in­crease loan lim­its from $1 mil­lion to $2 mil­lion and in­crease the amount mem­ber as­so­ci­a­tions can re­ceive in ad­vance based on the value of their live­stock.

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

“Feeder as­so­ci­a­tions in Al­berta are fac­ing chal­lenges in ac­cess­ing the cap­i­tal they need. We have the backs of our pro­duc­ers – that’s why we are in­tro­duc­ing these amend­ments. With this move, we are show­ing a prime ex­am­ple of our gov­ern­ment’s re­spon­sive­ness to in­dus­try and com­mit­ment to sup­port­ing the evolv­ing needs of ru­ral busi­nesses.”

Oneil Car­lier, Min­is­ter of Al­berta Agri­cul­ture and Forestry

Reg­u­la­tion changes

• In­creas­ing the in­di­vid­ual and joint mem­ber­ship loan lim­its from $1 mil­lion to $2 mil­lion lets feeder as­so­ci­a­tions dis­trib­ute their fixed costs across a greater num­ber of live­stock and pro­vides in­creased ac­cess to cap­i­tal.

• In­creas­ing the max­i­mum eq­uity ad­vance for risk-mit­i­gated cat­tle from 50 per cent to 75 per cent gives mem­bers of feeder as­so­ci­a­tions ac­cess to more eq­uity to gen­er­ate more favourable cash flow for their op­er­a­tions. “We are pleased that gov­ern­ment has moved for­ward with these changes. Our mem­bers will have greater flex­i­bil­ity to op­er­ate. They will have in­creased ac­cess to cap­i­tal which will help in mak­ing their op­er­a­tions more ro­bust and re­spon­sive to in­creased de­mand for feeder cat­tle.”

Eric Boot, chair, Feeder As­so­ci­a­tions of Al­berta Lim­ited

In 2016, the Al­berta gov­ern­ment in­creased the pro­vin­cial loan guar­an­tee to $100 mil­lion from $55 mil­lion for feeder as­so­ci­a­tion mem­bers buy­ing and feed­ing live­stock for mar­ket.

Al­berta is the beef cap­i­tal of Canada, with more than 40 per cent of the na­tional herd, mak­ing the cat­tle in­dus­try a key driver of Al­berta’s ru­ral econ­omy.

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