The Alberta government is stepping up support for its livestock producers by raising the cap on the Feeder Associations Loan Guarantee Program to $225 million from the current $150 million.
Announced last week, the move comes as international demand for Alberta’s beef continues to climb, pushing prices higher and creating greater financing needs for producers.
The loan program provides government-backed, low-interest financing through 45 locally run feeder associations, enabling farmers to buy cattle and sheep and expand their operations. Since its creation in 1936, the program has issued more than $12 billion in loans and now finances between 17 and 24 % of Alberta’s calf crop each year.
Agriculture Minister RJ Sigurdson said the increase will help ensure Alberta remains competitive in global markets.
“Increasing the limit will ensure thousands of producers have access to the capital they need to keep producing Alberta’s world-renowned beef,” he said in a statement.
“With cattle prices as high as they are right now, an increase to the program is critical,” added producer Dustin Lamb. “Getting this increase will be absolutely huge. Access to capital is incredibly important and helps producers, like myself, to grow and thrive. The program was a huge part of me coming back to the farm that my family started and will be instrumental in keeping it going.”
The Ontario government last year increased financing available through its Feeder Cattle Loan Guarantee Program by $240 million to $500 million.
