Borrowing limits under the Manitoba Livestock Associations Loan Guarantee (MLALG) program have increased to ensure producers can access credit with favourable terms. This announcement was made by Agriculture, Food and Rural Development Minster Ron Kostyshyn.
“Changes to the borrowing limits were needed to reflect higher cattle prices and the growing size of livestock operations across the province,” said Minister Kostyshyn. “Based on recommendations from livestock associations and livestock producers, the expansion will help ensure producers can access the financing they need to manage their farms effectively.”
The borrowing limit for the MLALG program has increased to up to $8 million from $5 million for associations and up to $500,000 from $300,000 for individual association members.
The MLALG program provides producers who are members of livestock associations with more favourable financing terms than they would be able to access individually, as well as reduced handling costs due to the higher volumes of cattle sold through the associations. Producers can use the funds to purchase feeder or breeder cattle with repayment terms of up to one year and up to seven years, respectively.
“The Association of Manitoba Feeder Cooperatives would like to express our appreciation for the efforts of the Manitoba government, which recognized that due to higher cattle prices, it was necessary to increase the maximum borrowing limits available under the MLALG program,” said Rob Smith, executive director. “The increase in borrowing limits will go a long way in making the program a viable option to finance the purchase of cattle required for expanding operations with the new reality of dramatically higher prices.”
MLALG, which is administered by Manitoba Agricultural Services Corporation (MASC), provides a 25 per cent guarantee of the loans made by private-sector lenders to livestock associations. Last year, MASC approved a total loan amount of $21.6 million for eight livestock associations with more than 200 association members, the minister noted.
For more information about the MLALG, visit www.masc.mb.ca.
