The Federal Government will extend the repayment deadline for livestock advances to September 30, 2010, to demonstrate their ongoing concern for livestock producers. The Canadian Federation of Agriculture (CFA) has been very appreciative of the support given to the livestock producers who have faced many challenges in 2008.
The CFA has worked with both livestock commodity organizations and the government to minimize the threat posed by untimely repayment requirements. The new guidelines will provide farmers with the much-needed time that is necessary to effectively manage their livestock operations and prepare for the future.
“Livestock producers have just been through a very difficult year,” said CFA 1st Vice-President Laurent Pellerin. “This announcement by Agriculture and Agri-Food Minister Gerry Ritz means that these farmers will not have to face an artificial liquidity crunch at the worst possible time.”
“The current economic climate has made a difficult situation virtually impossible for livestock producers,” said Ron Bonnett, CFA 2nd Vice-President. “We want to thank Minister Ritz for listening to the concerns of farmers and providing the repayment flexibility essential for the industry to emerge as a strong global participant.”
Many farmers were faced with possible default of the government loan due to a lack of liquidity which ultimately resulted from current market conditions. A ‘Stay of Default’ will delay this repayment requirement and give farmers the opportunity to use this year to rebuild their balance sheets.
The story of livestock input costs have begun to improve, as grain, fuel, and energy prices begin to moderate. However, the current economic crisis means consumer demand is very low. These factors combined with credit issues and other liquidity concerns means that the livestock industry is still quite vulnerable.
