CPC Tracks Loan Loss Reserve Programme Success

CANADA - Pork producers who apply for loans under the Canadian Hog Industry Loan Loss Reserve Programme are being encouraged to outline their experiences to the Canadian Pork Council, writes Bruce Cochrane.
calendar icon 19 November 2009
clock icon 3 minute read

The Canadian Hog Industry Loan Loss Reserve Programme is part of a national pork industry restructuring plan which offers government guaranteed loans through participating financial institutions.

Canadian Pork Council president Jurgen Preugschas told those on hand yesterday for Saskatchewan Pork Industry Symposium 2009 the organization needs to be able to provide the government an indication of how well the program is working.

Jurgen Preugschas-Canadian Pork Council

There's several things I think that we need to know.

One is just the success or lack there of, so whether or not they got the money or were refused the money.

That's the first thing we need to know.

Secondly then we need to know why they were refused.

The other important factor is the interest rate.

We want to monitor that, that there isn't a penalty for being a hog farmer when you've got a 90 per cent government guaranteed loan that then you as well penalize us with extremely high interest rates.

I have heard in talking to various producers that some have been approved.

I've not heard of anyone who's actually received the money but I've heard of people approved.

I've talked to many people that have applied for the programme and we're certainly looking for producers to inform us as to the success or lack there of of getting this money.

Mr Preugschas notes estimates suggest 25 per cent of producers will be participating in the Hog Farm Transition Programme which provides compensation to those producers who agree to exit the industry for a minimum of three years and he's hopeful the remaining 75 per cent will qualify for the loans program.

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