Feeder Cattle Loan Guarantee Program

By mmuise
Description:

They also administer the Advance Payments Program (APP) on behalf of the 15 feeder cattle Co-ops. There is an entry for the federal program. The local Co-op can offer applicants the interest free advances of APP on up to $100,000 of their eligible feeder loan during a production period. A simple application form is completed at the same time as the cattle are purchased and accompanying paperwork are processed for the feeder loan. The current application fee is $125 and the interest free advance is calculated as 50% of the expected market value, as determined by Agriculture and Agri-Food Canada.


Comments on Funding:

Funding is a loan guarantee for feeder cattle purchase of up to $1,000,000 for individuals and $1,500,000 for corporations.
Applicants may receive financing for up to 100% of their purchase and may also be eligible for free interest on a portion of their loan.

Each co-op charges an annual membership fee, administration cost, insurance, tag cost and costs associated with the cattle purchase can also be included in loan.
A 5% security deposit is required based on the amount of loan and may be refundable 90 days after the loan is paid.

Deadline: Continuous Intake
Eligibility:

Applicants must:

  • be beef farmer living in Ontario;
  • be/ become members of one of 15 feeder cattle co-operatives across the province;
  • need a loan for home-produced calves, or for purchased feeder cattle.
Application Steps:

Applicants must:

1. apply to the co-op's board of directors for membership;

2. apply for a purchase order for the amount of anticipated feeder cattle purchase, maximum of up to $1,000,000 for individual and $1,500,000 for corporations. A member can split purchase order to cover up to four groups of cattle.



Once member receives purchase order, feeder cattle may be purchased in the name of the co-op.

Cattle are tagged and notched by the member and inspected by the co-op supervisor.

The co-op facilitates the payment for the cattle. When cattle are sold, they are sold in the name of the co-op and the member’s name and proceeds are applied to the loan.

Co-op supplies ID ear tags (not CCIA), handles all paperwork for loan, administers all correspondence with the lender, and insures the cattle.

Documentation Needed:

There is limited financial information required for application.

Other Things to Note:

They also administer the Advance Payments Program (APP) on behalf of the 16 feeder cattle Co-ops. There is an entry for the federal program (no. 281). The local Co-op can offer applicants the interest free advances of APP on up to $100,000 of their eligible feeder loan during a production period. A simple application form is completed at the same time as the cattle are purchased and accompanying paperwork are processed for the feeder loan. The current application fee is $125 and the interest free advance is calculated as 50% of the expected market value, as determined by Agriculture and Agri-Food Canada.

About the author
mmuise