The opportunity to access advance AgriStability payments will help some hog operations stay afloat, says SaskPork chair Joe Kleinsasser.
The federal and provincial governments have announced that targeted advance payments will be available to those who qualify. Letters were to be in the mail this week, telling producers how to apply and how much they could receive.
Producers can receive up to 75 percent of their estimated payments as long as half their income comes from hog operations.
“The last three years have been absolutely horrendous,” Kleinsaaser told reporters at the legislature, where Saskatchewan agriculture minister Bob Bjornerud made the announcement.
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“We have seen a lot of people go under through no fault of their own.”
He said AgriStability helps but not when it takes so long to access the money.
“By the time you apply and by the time they decide to pay you, it could be up to three years and by that time you could be long gone.”
The Canadian hog industry has been hurt by an incorrect association with the H1N1 flu virus, the high Canadian dollar and high feed costs.
Kleinsasser said the industry is looking at positive returns by the second quarter of 2010.
“We had hoped to be out of the tunnel before the train came,” he said.
“The feeling out there is we’re still in the tunnel, the train is almost there.”
Targeted advances were also available last year.
Bjornerud agreed they are only a short-term cash flow measure.
“Really, you’re borrowing from Peter to pay Paul, let’s be honest about it,” he said.
