The Manitoba Pork Credit Corporation reports interest among pork producers in borrowing under the federally guaranteed Advance Payments Program is higher this year than last.
The Advance Payments Program, administered by the Manitoba Pork Credit Corporation, is a federally guaranteed loan program that is available to help hog producers in Manitoba, Saskatchewan, Alberta and B.C. meet their financial obligations and improve cash flow.
Under the program eligible hog producers may borrow up to 400,000 dollars with the first 100,000 being interest free and remaining 300,000 at the prime rate of interest which is now is at 2.85 percent and they must have enough inventory to cover the requested loan amount.
Randy Ozunko, the manager of the Advance Payments Program with the Manitoba Pork Credit Corporation says money loaned through the program is typically used to buy feed and other inputs.
The interest so far has been better than has been last year and the reason for that I think is the federal government has put out some advertising.
They have sent out letters to all the producers across western Canada advising them of the Advance Payments Program, which is not only available to hog producers but to crop producers and different types of livestock producers so we’re seeing an increase in the amount of interest that is being shown by producers right across western Canada and I’ve had quite a few inquiries right now from Alberta.
I think the way the industry is going right now that this is an opportune time for producers to take advantage not only the interest free portion, where 100,00 dollars is loaned out without any interest but the interest bearing rate now at 2.85 percent I think is a really good deal for producers at this time.
Ozunko notes it’s an 18 month program starting April 1 so loans must be repaid by September 30, 2016.
For more information call 1 866 557-5452 or email rozunko@manitobapork.com.
