New Brunswick will put up $3 million in loans for its hog farmers over the next two years, the agriculture department announced Wednesday.
Citing the rising loonie, the “significant” drop in hog prices and escalating feed and fuel costs, the province said its program “will help stabilize the industry from extremes caused by this ‘perfect storm.'”
The province will make $2.2 million in loans available in this fiscal year, interest-bearing at the provincial borrowing rate. The remaining $800,000 will be available in 2008-09.
The loan program, to be funded out of the Regional Development Corporation’s Total Development Fund (TDF), was developed by the province in consultation with Porc NB Pork, the provincial hog farmers’ advocacy and marketing group.
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According to Porc NB Pork, the province has 51 hog farmers who produce a total of 200,000 hogs per year. The province notes that the hog sector posted farm gate sales worth over $25 million in 2006.
Agriculture Minister Ron Ouellette said Wednesday the province will work with the federal government to make sure existing programs work efficiently, and “to identify other opportunities for federal participation in dealing with this crisis.”
