The Alberta government has raised the loan limits under the provincial Feeder Associations Guarantee Program to $3 million excluding advances, up from $2 million.
“We want to ensure cattle feeders are able to get the financing they need in time for the fall run,” said provincial agriculture and irrigation minister R. J. Sigurdson.
“As you know, demand for financing is high and these amendments will help the beef industry continue to grow and compete internationally. I’m pleased to report that as of today, the amendment is signed off and the regulation has now been changed.”
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He made the announcement yesterday at the second-annual Alberta Beef Industry Stampede Summit in Calgary, which was attended by about 250 people including provincial and federal politicians.
“I know how important the loan guarantee is, especially for succession and paving the way for folks new to the sector, so I’m proud to announce these new changes,” he said.
The increase was welcomed by Brodie Haugan, chair of Alberta Beef Producers.
“I think it’s wonderful. Any support we can give, especially to young producers that are looking to have to be supported to get into the industry, is a good conversation to have,” he said during an interview at the summit.
The rising cost of beef calves and sheep prompted the Alberta government late last year to add $50 million to the program, which helps younger producers obtain financing to buy livestock. It was boosted to $150 million for beef and sheep producers, up from $100 million.
Alberta has 45 feeder associations totalling about 2,100 members. As co-operatives run by local livestock producers, they help bring their members’ cattle and sheep up to market weight before shipping the animals for processing.
Cattle prices have gone up 25 percent since the beginning of this year and are likely to keep increasing, said a provincial statement.
“Alberta’s livestock producers are in greater need of easily accessible, low-interest capital backed by a government guarantee.”
Haugan said it is also vital to ensure that the risk is being covered for such producers.
“And we’re going to do everything we can to make sure a program or at least the conversation is being developed.”
Options such as insurance programs need to be made fully available to cow-calf feeders “so that if a severe event that’s out of the control of that operator occurs, they’re not completely out of the industry and gone,” he said.
“We want to make sure that they still get through that first or second year and are still around for years to come.”
There particularly needs to be an honest discussion and a fix within AgriStability, specifically for the cow-calf sector, so that it is a useful tool that can be utilized, said Haugan. Cow-calf producers are an essential pillar of the beef industry, he added.
“And we need to make sure we keep the cow herd alive and vibrant within Canada and within Alberta, and then that will also multiply across all the other sectors and be well supported to make sure the animals are here for the feedlots and the backgrounders, and across the chain.”
Canada’s national herd, including calves, totalled 11.27 million this year, which is its lowest level since 1990 when it was 11.22 million, said the Canadian Cattle Association, based on figures from Statistics Canada. About 70 percent of the national herd is in Alberta.
Contact doug.ferguson@producer.com
