Gerry Friesen expected losses of $50,000 by the end of 1998 on his hog farm at Wawanesa, Man.
So the chair of Manitoba Pork was glad to hear about a provincial loans program that will lend up to $50,000 to individual farmers to help cover the cash crunch.
But Friesen expects to lose more money until prices improve in the new year. He says bankers will have to be flexible and understanding to help farmers make it through.
Manitoba’s agriculture minister announced the loans program on Dec. 22. It will lend up to $50,000 to farmers, and up to $100,000 to corporations, partnerships and co-ops.
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“This is not meant to bail out the bankrupt farmer,” said Harry Enns, adding the loans should help keep viable farms going despite poor commodity prices.
Loans will have a six percent interest rate and up to 10-year terms. Principal and interest payments may be deferred until prices recover.
Unlike Saskatchewan’s loan program for hog producers, this is open to all farmers, so trade action from the United States may be avoided.
Friesen said he is worried a hog-specific program in another province could set off retaliation from the U.S.
But he noted Manitoba hog producers are almost at the point where they don’t care about the long-term effects of a bail-out. They need help, he said.
Farmers must have a minimum gross farm income of $10,000 and be eligible for NISA to get the loans.
This will exclude some investor-owned hog operations from the loans program, noted Don Dewar, president of Keystone Agricultural Producers.
