Producers in the province will soon have access to increased lending limits through the Manitoba Agricultural Services Corporation (MASC).
Effective April 1, 2022, the direct loan limit will increase to $4.25 million from the current $3.5 million, reflecting increased land values and operating costs, the province said in a release Thursday. Stocker loan limits will increase to $750,000 from $500,000, and limits on the Manitoba Livestock Associations Loan Guarantee program will jump to $750,000 from $500,000, while association limits rise to $12 million from $8 million.
MASC's lending programs provide Manitoba's agricultural producers access to credit with reasonable interest rates and flexible repayment terms. The corporation provides direct loans and stocker loans, and guarantees loans made by private-sector financial institutions to help create and expand farming operations in rural Manitoba.
Limits were last updated in 2018.
“Our government recognizes the economic pressures on producers as they strive to succeed in the competitive world of agriculture, despite the challenges presented by last year’s drought and the impact of the ongoing pandemic,” said Agriculture Minister Derek Johnson.
Direct loans may be used to purchase agricultural land and buildings, agricultural equipment, breeding livestock and quota for supply-managed commodities. They may also be used for construction or renovation of farm buildings, greenhouses and nurseries, consolidation and refinancing of debt, and financing operating expenses.
Stocker loans provide producers with short-term financing for the purpose of purchasing feeder cattle and lambs or as a cash advance on their retained feeder animals. The Manitoba Livestock Associations Loan Guarantee program encourages feeding cattle in the province, thereby providing several economic spinoffs.
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