Agriculture and Irrigation Minister RJ Sigurdson has announced an increase in the lending limit on the Feeder Associations Loan Guarantee Program (FALGP).
Locally owned feeder associations utilize the program for low-interest financing backed by a government guarantee. Through the program feeder associations help livestock producers get financing to buy animals and grow their herds.
Producer, Dustin Lamb says the program played a huge part in his decision to return to the family farm and will be instrumental in keeping it going.
"With cattle prices as high as they are right now, an increase to the program is critical. Getting this increase will be absolutely huge. Access to capital is incredibly important and helps producers, like myself, to grow and thrive."
The previous FALGP had capped out at its previous limit of $150 million, with Sigurdson increasing the overall funds now available in the program to $225 million.
"Alberta is a beef province, and livestock is a huge part of our agricultural industry. Our cattle and sheep producers put food on tables in our province and around the world. Increasing the limit on Alberta’s loan guarantee program will ensure thousands of producers across the province have access to the capital they need to keep producing Alberta’s world-renowned beef."
FALGP typically finances 17 to 24 per cent of the calf crop each year, providing a significant portion of the industry’s lending requirement ensuring producer have access to grow and diversify their operations.
Feeder Associations of Alberta Chair George L’Heureux says the increase in funding will see the 45 feeder associations across the province have access to funding that is critically needed to support Alberta’s livestock industry.
"Without this kind of support, our industry would be facing a dire shortfall in available lending at the local feeder associations across the province. The rapid escalation in the cost of livestock simply makes it unfeasible to operate at previous levels and the last thing we need is to see any pressure on overall beef numbers in the province."
Since its establishment in 1936, Alberta's Feeder Associations Loan Guarantee Program has provided more than $12 billion in loans.
Details of the FALGP can be found here.