Canadian pork producers now have more time to apply for government-backed long-term loans. The deadline to apply for a loan under the Hog Industry Loan Loss Reserve Program (HILLRP) has been extended from March 1 to March 26th, 2010.
“Producers have told me they need more time to develop their business plans, meet with lenders, and to negotiate the best terms and rates for their operations, and we’ve listened,” said Agriculture Minister Gerry Ritz.
“We put Farmers First in the design of our programs, and being flexible with the deadline is a simple way to make the program more responsive to producers’ needs,” said Jean-Pierre Blackburn, Minister of Veterans Affairs and Minister of State (Agriculture).
The federal government has worked closely with the Canadian Pork Council to develop the Hog Industry Loan Loss Reserve Program to assist the pork industry in dealing with immediate short-term cash-flow pressures. The program is designed to increase access to credit for eligible producers currently producing hogs in Canada. Eligible producers must provide a business plan which demonstrates that the business is or can be viable and has a reasonable prospect of repaying the loan. The Government of Canada will share the risk for producers who choose this option. The program is not meant to add more debt to a business, but to help producers spread their short-term debt payments over a longer period of time, thereby freeing up cash in the near term.
In addition to the deadline extension for applications under the Hog Industry Loan Loss Reserve Program, the government is also increasing its share of the risk to 90 percent on loans used to repay advances received under the Advance Payments Program. This change will translate in an increase of the reserve allocated to each financial institution to cover potential loan losses.
The Government of Canada and the Canadian Pork Council also partnered to deliver $75 million through the Hog Farm Transition Program to help producers who decide to exit the industry. The program allows producers to tender bids for the amount of funding they need to transition out of the hog industry and cease hog production for at least three years. In addition to these programs, the government is investing $17 million in the International Pork Marketing Fund to fund market research, promotion and activities that enhance international marketing of Canadian pork products.
For more information on these programs, visit: www.agr.gc.ca/HILLRP or call 1-877-842-5601.
