The closing of the U.S. border to Canadian cattle has had limited impact so far on Alberta cattle feeder organizations that lend money to producers to buy cattle.
“It hasn’t affected us directly yet,” said Ted Quist, a director with the Feeder Associations of Alberta.
The managers and board members of the 61 local feeder associations across Alberta are keeping a close eye on finances as the border closure continues, but no policy changes have been made.
“The feeder association has not changed its practices yet. They haven’t done anything to restrict trade or animals yet,” said Quist.
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In 2001, 469,000 cattle were purchased for $3.8 million through feeder associations at an average price of $829.
Most animals financed through each local co-operative are background animals, which can be held on pasture or in backgrounding feedlots and don’t need to be sold now at low prices like fat cattle, he said.
Under the program, the livestock are owned by the feeder association, but the care, feeding and marketing are the responsibility of the member. Each association hires a manager to administer loans and keep financial records.
New members of a feeder association can buy up to $50,000 worth of livestock through the association. After one year, the amount can be increased to $200,000.
Before buying the cattle, members must pay a five percent security deposit.
The combination of the deposit and the federal and provincial BSE deficiency payment has covered the feeder association loans so far, said Quist.
He said the association has asked the Alberta government for a low-interest loan program to carry the members through to the border reopening.
Canadian cattle have been banned from entering the United States since bovine spongiform encephalopathy was discovered in an Alberta cow on May 20.
