Amid calls for emergency livestock assistance, the Saskatchewan government last week announced it would defer principal payments on short-term hog and cattle loans issued earlier this year.
Agriculture minister Bob Bjornerud admitted the move is not going to solve all the sector’s problems.
Only 2,500 cattle producers and 31 hog operations took advantage of the loan program. The cattle producers borrowed about $31 million, while the hog producers borrowed $15 million.
Hog producers can defer their principal payments from May 2009 to May 2010. Cattle producers have the option to defer 2009 payments for one year.
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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
All participants still have to pay interest. Bjornerud said the rate is about two percent.
The NDP opposition said the move isn’t enough to help the struggling sector. It intended to move an emergency debate in the legislature Nov. 24 and called on the government to use some of its $2.3 billion surplus.
“Short-term loans and gimmicky deferral options are not solutions to the problems that livestock producers are facing right now,” said opposition leader Lorne Calvert.
Bjornerud last week discussed the livestock situation with his federal counterpart, Gerry Ritz. He told Ritz that if the automotive sector is going to get help, then the livestock sector should, too.
“He was non-committal in that area right now but at least we have it on the table and he’s heard it from us,” Bjornerud said.
He also told Ritz the province is concerned about the implementation of mandatory country-of-origin labelling in the United States.
“We’re not going to stop pushing on this one,” the minister said. “I don’t think COOL for a minute is dealing with safety.”
He said COOL is protectionism and just adds more stress to an industry already suffering enough.
The Saskatchewan Cattlemen’s Association issued a news release commending Bjornerud for taking a strong position on COOL.
