The president of the Canadian Pork Council is expressing disappointment with the effectiveness of a federal program designed to allow pork producers to restructure existing debt and extend payments over longer terms.
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.
The Canadian Pork Council has been tracking the effectiveness of the program.
CPC president Jurgen Preugschas told those on hand yesterday in Winnipeg for the 2010 Manitoba Swine Seminar the financial institutions appear to be using criteria that makes it too difficult for producers to access funds.
It’s been good for those who have been able to access it and it’s close to 300 million dollars now that has been approved under that program and it’s only 113 producers.
It’s a very small percentage of producers have been able to access it.
We expected a much higher uptake and I think there’s a combination of reasons for that and that’s the part that we’re disappointed in.
We feel that maybe the financial institutions need to put a higher value on the government guaranteed portion of the loan.
What we are hearing is that they’re still lending with very similar criteria even without the government guaranteed portion so that would be the main thing.
Preugschas adds producers across Canada are indicating the linkage between the emergency Advance Payments Program and this program s causing some difficulties.
He says you’re taking a loan that is 100 percent guaranteed by government and replacing it with a loan that puts some of the risk with the financial institution and that in itself creates some issues.
Source: Farmscape.Ca
