Government legislation that will guarantee hundreds of millions of dollars in private sector credit to beginning farmers and marketing co-operatives will be law this week.
The legislation had moved quickly through the House of Commons but initially stalled in the Senate. However, the Senate’s agriculture committee has since approved the bill and the full Senate is expected to do the same June 16, leading to the bill’s proclamation into law by week’s end.
Agriculture minister Gerry Ritz said the program will be running as soon that happens.
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“The day royal assent occurs, it is good to go,” he told the Senate agriculture committee June 11.
The bill amends an existing program so no time-consuming new regulations have to be written.
Loans under the new rules could be available from financial institutions as early as this summer.
It will make government-guaranteed loans available for the first time to beginning farmers who have no track record in the industry but a good business plan.
It will also change the rules on how co-operatives can qualify to allow loans to co-ops with at least a majority of farmer membership. Until now, only co-ops 100 percent farmer-owned were eligible for loans under the Farm Improvement and Marketing Cooperatives Improvement program.
