Agriculture and Agri-Food Canada estimates 25 percent of Canadian pork production is now being funded by loans offered through the federal Hog Industry Loan Loss Reserve Program.
The Hog Industry Loan Loss Reserve Program is designed to allow pork producers to restructure existing debt and term out payments over a longer period.
Last week the federal government announced the application deadline has been extended from March 1st to March 26th and its share of the risk has been increased to 90 percent on loans used to repay advances received under the Advance Payments Program.
George Pikor, the special advisor Business Risk Management Programs with Agriculture and Agri-Food Canada says it is hoped the changes will make the program more accessible to some producers.
A portion of those loans, one of the requirements of the particular program was for producers to repay any APP Advance Programs Payment advances that were outstanding.
The rate for contribution was initially set at 70 percent.
Some have suggested that by increasing that to a 90 percent level that that might encourage more participation in the program.
Others have kind of indicated that they didn’t think that would really change.
A number of financial institutions have said that’s probably not likely going to change the likelihood of increasing the number of loans but I think Minister Ritz wanted to use what ever mechanism that he’s had at hand that might be able to increase participation in this program and give access to producers.
He also made that change with the view that it may have some implication and help make loans available to some producers in certain areas with certain institutions.
Pikor acknowledges the start up has been slow but lately participation in the program has increased.
He estimates about 25 percent of production has been enrolled in the program.
Source: Farmscape.Ca
