Livestock producers lack access to a new federal cash advance payment program because no one wants to administer it.
Manitoba and Ontario pork and beef producer organizations say they would administer the Advance Payments Program rolled out April 1, but add they need more details because of the different marketing dynamics within the livestock industry.
Manitoba Pork has agreed to run the program for its members, but it wants further clarification from Agriculture Canada because the pork industry ships hogs every week. Under the rules producers would have to start paying back the advance immediately after hogs were shipped.
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“It just doesn’t suit the industry,” said Andrew Dickson, who believes a well managed program could deliver much needed cash to smaller producers.
The cash advance is limited to $400,000 but $100,000 is interest free. That portion has value to smaller producers who need help buying inputs like feed grains. They would be able to lock in a better price if they had the cash on hand, said Dickson.
The Manitoba Cattle Producers Association is working on a delivery program while the Ontario Cattlemen’s Association is delivering some of it through its 19 feeder finance co-operatives, said spokesperson Paul Stiles.
The interest free portion would be handled through the feeder finance program while the other cattle sector would be offered through ACC Farmers’ Financial, which already handles cash advances for other commodities, Stiles said.
Ontario has already pointed out problems. The first sale of cattle would trigger repayment of the interest free portion. A feedlot turning cattle every week or month would have to start paying immediately. That rule needs to be reworked, said Stiles.
Alberta does not have an administrator yet, although the Feeder Associations of Alberta has offered to handle a portion, said president Reg Schmidt.
He thinks the associations would be a perfect fit because of their lengthy experience in financing cattle. But he also wants some aspects of the program reworked.
“They’re trying to make a grain program work for the livestock business. You don’t just seed once and harvest once,” he said.
The Alberta Beef Producers with its 32,000 members was approached last November to handle the program but declined, said chair Erik Butters.
It said the Alberta government’s financial services corporation should handle it.
For producers in provinces without administrators Agriculture Canada advises visiting its website at www.agr.gc.ca/app and look for “participating producer organizations.” These lists will be updated as more groups agree to handle the paperwork and loans.
