Alberta hog producers will soon be able to borrow money to buy pigs through feeder associations with a five percent down payment, just like cattle producers.
Don Erno, chair of the Alberta Hog Feeder Association, said the group hopes to start lending $13.3 million to hog producers by mid-May.
The association finalized agreements with Farm Credit Canada and its partner Cattlemen’s Financial Corp., part of the Nilsson Brothers group, at the end of April to lend money to producers.
Erno said 40 producers are waiting to borrow money to buy more than 200,000 hogs.
Read Also
Man charged after assault at grain elevator
RCMP have charged a 51-year-old Weyburn man after an altercation at the Pioneer elevator at Corinne, Sask. July 22.
Under the new association, producers apply to borrow money with a five percent down payment. Once the association’s credit committee approves the application, it is forwarded to the Cattlemen’s Financial Corp., which assesses the loan’s liability and then draws money from the Farm Credit Canada account.
Erno said the money will make it easier for the hog industry to grow.
“It provides an opportunity for producers to free up some operating capital.”
Finished hog prices have been low in the past few years and it has been difficult to convince bankers to finance the purchase of feeder pigs, he said.
Banks often require up to 30 percent down payment when buying pigs. Few producers had the financial ability to build hog barns and then buy the hogs to fill them.
