Hog Industry Programme Uptake at 25 Per Cent

CANADA - Agriculture and Agri-Food Canada estimates 25 per cent of Canadian pork production is now being funded by loans offered through the federal Hog Industry Loan Loss Reserve Programme, writes Bruce Cochrane.
calendar icon 2 March 2010
clock icon 3 minute read

The Hog Industry Loan Loss Reserve Programme 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 1 March to 26 March and its share of the risk has been increased to 90 per cent on loans used to repay advances received under the Advance Payments Programme.

George Pikor, the special advisor Business Risk Management Programmes with Agriculture and Agri-Food Canada says it is hoped the changes will make the programme more accessible to some producers.

George Pikor-Agriculture and Agri-Food Canada

A portion of those loans, one of the requirements of the particular programme was for producers to repay any APP Advance Programmes Payment advances that were outstanding.

The rate for contribution was initially set at 70 per cent.

Some have suggested that by increasing that to a 90 per cent 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.

Mr Pikor acknowledges the start up has been slow but lately participation in the program has increased.

He estimates about 25 per cent of production has been enrolled in the programme.

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