WINNIPEG – A new loan program designed to help Manitoba farmers get into the bison business is bullish for the industry, says the president of a provincial bison association.
“Up until now, basically the only entrants into the bison industry have been the guys with cash or some equity in another area that they could borrow money again, because the banks have not really recognized bison as good security,” said Dave Giesbrecht, who farms near Ste. Anne, Man.
Two weeks ago, the Manitoba government followed through on an election promise of more financing to farmers who want to diversify. Bison was one of two new loan programs set up under the Manitoba Agricultural Credit Corporation.
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A news release said up to $14 million in financing will be available to farmers during the next 18 months. The release hints that more programs for “large-scale diversification and value-added activities” will soon be announced.
Government praised
Giesbrecht said he was impressed the government “has an open enough mind and enough foresight to see that a little industry like the bison industry has good potential.”
The loan program will cover up to 80 percent of the market value or price of breeding stock.
There are more than 50 bison farmers in Manitoba. Giesbrecht said it’s hard to find cows and heifers for sale, but the loan program will help the industry grow, one buffalo at a time.
Cows now sell for about $5,000, while six-month-old heifer calves cost about $3,000.
He said bison producers can sell all the meat they produce as there is strong global demand for the meat and it’s only produced in North America. He also said small operations can be profitable. Most herds in the province have less than 25 cows.
Other programs announced included:
- A new loan program for buying replacement heifers. Farmers can borrow up to 80 percent of the purchase price, to a maximum of $700 per heifer. During the first year, farmers can choose to pay only interest.
- An expanded loan program for feeding cattle. The loan limit for the stocker loan program will be increased to $125,000 from $100,000.
- Changes to the hog lending program that make it easier to start a small, entry-level operation.
James Bezan, executive director of the Manitoba Cattle Producers Association, said the announcement will help producers adjust to a new era of agricultural policy.
However, he cautioned cattle farmers and would-be ranchers to be careful in today’s tough cattle market.
“Make sure that if you’re going and leveraging dollars out to expand your cattle base, take a hard look at where the market’s at, take an extra-hard look at what your production costs are, and only proceed if those things come down on the positive side.”
