The Manitoba Agricultural Services Corporation (MASC) is increasing limits on several lending products to help the province’s producers manage demands of farming in today’s economy.
“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. “In response, MASC has increased lending limits to provide our farmers, especially the younger generation, with financial options that give them greater flexibility in managing, establishing or expanding their operations.”
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, thereby supporting the transition to the next generation of farmers. Limits were last updated in 2018.
Effective April 1, 2022, the direct loan limit will increase to $4.25 million from $3.5 million, reflecting increased land values and operating costs. 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.
Limits on stocker loans, which 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, are also being increased. As well, effective April 1, 2022, stocker loan limits will increase to $750,000 from $500,000. With Manitoba’s beef herd reduced significantly because of recent drought years, increasing the lending limit to $750,000 from $500,000 provides an excellent tool to help producers rebuild their herds, the minister noted.
Limits on the Manitoba Livestock Associations Loan Guarantee program, which encourages feeding cattle in the province thereby providing several economic spinoffs, will increase to $750,000 from $500,000 and association limits will increase to $12 million from $8 million, both as of April 1, 2022.
“By providing lending programs, our government further supports and encourages the sustainability, development and diversification of agriculture and the rural economy of Manitoba,” said Johnson. “These changes will help ensure that MASC’s lending products remain relevant to producers and that capital is available. Supporting growth in the agricultural industry is important as it is a key driver of our provincial economy.”
For more information, visit masc.mb.ca.
