CANADA - The Manitoba Pork Credit Corporation reports interest among pork producers in borrowing under the federally guaranteed Advance Payments Programme is higher this year than last, writes Bruce Cochrane.
The Advance Payments Programme, administered by the Manitoba Pork Credit Corporation, is a federally guaranteed loan programme that is available to help hog producers in Manitoba, Saskatchewan, Alberta and B.C. meet their financial obligations and improve cash flow.
Under the programme eligible hog producers may borrow up to 400,000 dollars with the first 100,000 being interest free and the remaining 300,000 at the prime rate of interest which is now at 2.85 per cent and they must have enough inventory to cover the requested loan amount.
Randy Ozunko, the manager of the Advance Payments Programme with the Manitoba Pork Credit Corporation, says money loaned through the programme is typically used to buy feed and other inputs.
Randy Ozunko-Advance Payments Programme:
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 Programme, 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 per cent I think is a really good deal for producers at this time.
Ozunko notes it's an 18 month programme starting April 1 so loans must be repaid by September 30, 2016.
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