Beef Farmers of Ontario (BFO) – Feeder Cattle Loan Guarantee Program (2022)

Description:

The Ontario Feeder Cattle Loan Guarantee Program supports the operation of 16 feeder cattle co-operatives across the province. Each feeder cattle co-op is operated by a board of directors who negotiates a credit limit with a lender in order to assist members with the purchase of cattle for further feeding.

Beef farmers can apply for a purchase order for the amount of anticipated feeder cattle purchase, maximum of up to $500,000.

Comments on Funding:

Funding is a loan guarantee for eeder cattle purchase of maximum $500,000.

Applicants may receive financing for up to 100% of their purchase and may also be eligible for free interest on a portion of their loan.

Each co-op charges an annual membership fee, administration cost, insurance, tag cost and costs associated with the cattle purchase can also be included in loan.

A 5% security deposit is required based on the amount of loan and may be refundable 90 days after the loan is paid.

Eligibility:

Applicant must:

  • be beef farmer living in Ontario;
  • be/ become members of one of 16 feeder cattle co-operatives across the province;
  • need a loan for for home-produced calves, or for purchased feeder cattle.

Applications Steps:

Once member receives purchase order, feeder cattle may be purchased in the name of the co-op. Cattle are tagged and notched by the member and inspected by the co-op supervisor. The co-op facilitates the payment for the cattle. When cattle are sold, they are sold in the name of the co-op and the member’s name and proceeds are applied to the loan. Co-op supplies ID ear tags (not CCIA), handles all paperwork for loan, administers all correspondence with the lender, and insures the cattle.

Documentation Needed:

There is limited financial information required for application.

Other Things to Note:

They also administer the Advance Payments Program (APP) on behalf of the 16 feeder cattle Co-ops. There is an entry for the federal program (no. 281). The local Co-op can offer applicants the interest free advances of APP on up to $100,000 of their eligible feeder loan during a production period. A simple application form is completed at the same time as the cattle are purchased and accompanying paperwork are processed for the feeder loan. The current application fee is $125 and the interest free advance is calculated as 50% of the expected market value, as determined by Agriculture and Agri-Food Canada.

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