The Canadian Pork Council reports uptake of loans under the Canadian Hog Industry Loan Loss Reserve Program has been slow.
The Loan Loss Reserve Program, offered through Canada’s financial institutions, is part of a federal hog industry restructuring plan and allows producers to consolidate and extend repayment of existing debt.
The Canadian Pork Council is surveying producers about their experiences with the program.
CPC public relations manager Gary Stordy reports there is still a lot of unanswered questions.
At the end of the day it appears that this program, even though it was discussed and announced some time ago, the actual implementation of the program may not be as fast as we expect.
Frankly we are hearing, we can’t substantiate this, is that producers are not asking for the program and that’s concerning.
We’d like to get a handle on that.
We’d like to know, if that’s the case, why aren’t they asking for the program?
We’re getting a number of feedback from the banks that this is a good program, it’s going to work, just give it some time.
The difficulty we have is that frankly time might not be an option for some producers who have to make decisions and at the same token if producers are not asking for the program or talking to their financial institutions about the program that has to be dealt with also.
What we are getting back as some information is that there’s some concerns about eligibility, certainly equity questions, whether producers have enough equity may be a barrier.
We would encourage producers to, frankly, negotiate with the financial institutions regarding the interest rates and work with the program.
Stordy says the Canadian Pork Council is working with Agriculture Canada and the Canadian Bankers Association to discover and rectify any problems and he encourages producers who are aware of problems to report them.
Source: Farmscape.Ca
