Up to 600 Producers Expected to Apply for Hog Loans

by 5m Editor
28 February 2008, at 10:11am

CANADA - The Manitoba Agricultural Services Corporation expects between 500 and 600 of the province's hog producers to take advantage of a new provincial hog loan program, Bruce Cochrane.

Last week Manitoba Agriculture Food and Rural Initiatives announced a 60 million dollar hog loan program to help swine producers contend with cash flow problems.

Manitoba Agricultural Services Corporation vice president of lending operations Shep Kaastra says all Manitoba swine producers are eligible.

Shep Kaastra-Manitoba Agricultural Services Corporation

There's a loan cap of 2.5 million for any one producer and the first three years are basically interest only at a reduced rate of 2.25 percent for the first year and 4.5 for year two and three of the program and then the loan is amortized over the remaining five years at a six percent interest rate.

The six percent interest rate over the last five years would be a competitive rate.

That's our standard rate that MASC lends out.

The first three years of the program are quite favorable, especially the first year, would be at 2.25.

It would be about 3.75 percent below what we're currently charging farmers for a similar term of rate.

We're looking at potentially up to 500 to 600 producers accessing the program.

Those are preliminary estimates.

It's very preliminary but that is what we're targeting and we're certainly trying to accommodate staffing levels for that so that we can have a decent turn around time.

Given the significant cash pressure farmers are facing, Kaastra expects a fairly positive response to the program.

He encourages producers to examine their own production and consult their financial advisors to determine whether this program will meet their needs.

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5m Editor