The Canadian Pork Council is encouraging hog producers to consider the potential benefits of taking advantage of a federal loan program designed to allow a pork producers to restructure their debt.
The Canadian Hog Industry Loan Loss Reserve Program, being offered through Canada’s chartered banks and credit unions, is part of a federal pork industry restructuring plan and allows pork producers to consolidate and extend repayment of existing debt.
Canadian Pork Council public relations manager Gary Stordy says feedback from the banks indicate producers are not asking for the program.
There’s a concern that producers don’t want anymore debt and that’s a fair assessment but producers can also look at this as an opportunity to term out their existing debt, not necessarily new debt but help deal with some of the debt they have, term it out and it might give them some breathing room to move forward.
So if I do have any message, for those producers that are curious about the program but feel we don’t need another loan, they may want to speak with their accountants and see what they can do to take advantage of the program and term it out.
This program is not going to be here forever.
It does I believe end or will not be available after the end of February or mid-March so producers who are interested in this program or are not aware of the program may want to inquire.
At the end of the day there’s no harm in touching base with their financial institution and see what the eligibility is.
Stordy notes there are steps producers will have to complete, whether it’s providing a business plan or accounting information.
He says the program is intended to help producers deal with liquidity issues and move forward in this difficult time and there is a significant amount of the industry riding on the success of this program.
Source: Farmscape.Ca
