By Bruce Cochrane.
The General Manager of Manitoba Pork says the financial institutions are expressing an interest in providing the capital needed to renew the province's pork production infrastructure.
In April the Manitoba Government launched a pilot project under which pork producers can apply for permits to build new or expand existing swine barns.
Under the new protocol producers must comply with 11 new conditions over and above existing requirements including the use of two cell manure storage lagoons.
Manitoba Pork General Manager Andrew Dickson, as part of his Pork Industry Update delivered yesterday to the 2016 Manitoba Swine Seminar, told those on hand we've seen a renewed interest among the financial institutions in working with producers to finance the construction of new facilities.
Andrew Dickson-Manitoba Pork:
I would encourage producers to go for the longest terms they can get.
For a building that's going to last 25 years or 30 years you should be looking for a mortgage that's at least 15 years.
One institution is offering that.
You're going to have to get them to lend against your actual construction cost not just market value.
We know Farm Credit Corporation, for, example is prepared to step forward and I fully expect the major banks will come forward as well.
I think what's helped is that we've had, the last 2 years and going forward, we look as though we're going to be in a period where there's some margins in the business, there's been some repayment of debt, balance sheets look a little so I think a lot of financial institutions are taking another look at the industry and, as we go forward , they're seeing some prospects and they're prepared to finance operations.
But I've got to emphasize here it's absolutely critical producers can show they have the capacity to service any debts they take on.
Dickson notes the pork industry saw a number of positive developments in 2015, including the repeal of U.S. Country of Origin Labelling for pork and beef, further movement on the completion of the Trans-Pacific Partnership Free Trade Agreement and the Canada-European Union: Comprehensive Economic and Trade Agreement and improvements in the management of disease.
Source: Farmscape