Cattle producers wanting to expand or maintain herds — in a time of nationwide herd contraction — are the expected beneficiaries for a new loan program from Farm Credit Canada.
FCC on Tuesday announced what it calls the Replacement Heifer Program, consisting of a loan with a maximum loan life of seven years and a maximum two-year period of interest-only payments.
Variable interest rates for loans made under the program will be capped at prime plus 1.5 per cent, and loan processing fees will be waived, FCC said.
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The federal ag lender cited Statistics Canada data which put recent Canadian beef cattle inventory at about 10.3 million head, down four per cent from 2017.
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“The drought conditions this summer affected a large cattle producing area in Western Canada and right now ranchers are making decisions about how to best manage their herds,” FCC chief operations officer Sophie Perreault said in a release.
The new program, she said, “will help reduce cash flow pressures for those who want to maintain or grow their herd.”
Garner Deobald, president of the Saskatchewan Stock Growers Association, hailed the lender’s announcement, saying the program “will help producers rebuild or maintain their herds after consecutive years of drought.”
Perreault said ranchers with other needs beyond heifer financing are urged to contact an FCC representative. — Glacier FarmMedia Network
