Canadian Pork Council officials are cautioning producers that they should not expect to see immediate money from the federal government’s loan program that officially launched Oct. 5.
Canadian Pork Council public relations manager Gary Stordy said early availability across the country will be spotty.
“Any producer going to a lender office today can start discussions but they should not expect approval or a loan today,” he said.
He said there could be regional differences in rules and procedures for loan approvals. The credit union system, with no central national lending body, is one but not the only example.
Overall, the industry supported the program in an Oct. 2 statement. CPC president Jurgen Preugschas from Mayerthorpe, Alta., said the industry lobby is “relieved that the programs will be available shortly.”
Agriculture minister Gerry Ritz announced the Hog Industry Loan Loss Reserve Program in August to make hundreds of millions of dollars available in loans to a hog industry that has been hit by more than three years of losses and equity erosion.
Private and public lenders like Farm Credit Canada will administer the program, lending money to farmers who can convince them they have a business plan that will make them viable if they can get additional financing to get them through the short-term.
Interest rates will be commercial but Ottawa will guarantee the loans against default.
Producers can receive more information on the program at www.agr.ca/HILLRP.
As well, starting Oct. 8 producers will be able to start applying for a share of $75 million available to farmers interested in at least temporarily getting out of the industry. They will be able to contact the CPC for information on the Hog Farm Transition Program and to receive a registration form to take part in future auctions.
Information is available at www.cpc-ccp.com
