Livestock producers will now be able to access more funding under the Manitoba Livestock Associations Loan Guarantee (MLALG) program.
The Manitoba government has announced that borrowing limits under the program have increased to up to $8 million from $5 million for associations and up to $500,000 from $300,000 for individual association members.
"Changes to the borrowing limits were needed to reflect higher cattle prices and the growing size of livestock operations across the province," said Manitoba Agriculture, Food, and Rural Development Minister Ron Kostyshyn. "Based on recommendations from livestock associations and livestock producers, the expansion will help ensure producers can access the financing they need to manage their farms effectively."
The MLALG program provides producers who are members of livestock associations with more favourable financing terms than they would be able to access individually, as well as reduced handling costs due to the higher volumes of cattle sold through the associations.
Producers can use the funds to purchase feeder or breeder cattle with repayment terms of up to one year and up to seven years, respectively.
"The Association of Manitoba Feeder Cooperatives would like to express our appreciation for the efforts of the Manitoba government, which recognized that due to higher cattle prices, it was necessary to increase the maximum borrowing limits available under the MLALG program," said Rob Smith, executive director. "The increase in borrowing limits will go a long way in making the program a viable option to finance the purchase of cattle required for expanding operations with the new reality of dramatically higher prices."
Source : PortageOnline