Saskatchewan cattle and sheep producers who borrowed money through the provincial breeder livestock loan guarantee program have a bit of breathing room to repay the principal.
Provincial agriculture minister Bob Bjornerud announced last week that participants have the option to defer their principal payments for one year. They still have to pay the interest, however.
“This principal payment extension will help producers address cash flow concerns and purchase feed,” Bjornerud said.
The government has done this before to free up money for producers. Bjornerud said 30 to 40 percent took advantage of the offer the last time it was made.
As of May 31, 1,824 producers had taken breeder loans.
Bjornerud said some of the principal amounts are significant – $15,000 or more.
Local breeder associations will make the applications available to their members.
Producers who have already made their principal payments in 2009 are eligible for a one-year deferral on their next payment.
