by Morinville Online Staff
The provincial government has announced amendments to the Feeder Associations Guarantee Regulation to support Alberta’s livestock industry.
These changes, aimed at bolstering the cattle producers’ ability to maintain their position as leading exporters of agri-food products, will provide enhanced financial support and better cash flow options for their operations.
The government says the amendments, which raise individual and joint membership loan limits, excluding advances, from $2 million to $3 million, will play a crucial role in ensuring that Alberta’s beef producers have the necessary capital to sustain their operations. Beef is not only Alberta’s largest agri-food export but also globally known for its quality.
RJ Sigurdson, the Minister of Agriculture and Irrigation, emphasized the importance of feeder associations in supporting new entrants in primary agriculture. He stated, “These amendments ensure thousands of producers across the province have access to the capital they need to keep producing Alberta’s world-renowned beef.”
Cattle prices have been steadily increasing, with a 25 percent rise since the beginning of this year, and the trend is expected to continue. To meet the growing demand and maintain their competitiveness in the global market, the government says Alberta’s livestock producers require easily accessible, low-interest capital with government backing.
Feeder associations of local livestock producers, play a vital role in the industry. They take in cattle and sheep, feed them to market weight, and then ship them for processing. The Alberta Feeder Associations Loan Guarantee Program provides these producer-run cooperatives with competitive financing, ensuring their continued participation in the global market.
Philipp Lammerding, Chair of Feeder Associations of Alberta Ltd., praised the amendments, stating, “These changes will help to ensure continued sustainable growth in Alberta’s livestock feeding sector, providing much-needed support to our existing feeder members while making this capital-intensive business more viable and accessible to new entrants and young farmers in the current market environment.”
Alberta is home to 45 feeder associations with approximately 2,100 members, ranging in size from three to 200 members.
For more information about the Feeder Association Loan Guarantee Program, interested parties can visit the program’s official website at https://www.alberta.ca/feeder-association-loan-guarantee-program.aspx.