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.
apply for a purchase order for the amount of anticipated feeder cattle purchase, maximum of up to $500,000, after becoming a member. A member can split purchase order to cover up to four groups of cattle.
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.
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.