Beef Farmers of Ontario (BFO) – Feeder Cattle Loan Guarantee Program (2022)
Description:
The Ontario Feeder Cattle Loan Guarantee Program supports the operation of 15 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 $1,000,000 for individuals and $1,500,000 for corporations.
Comments on Funding:
Funding is a loan guarantee for feeder cattle purchase of up to $1,000,000 for individuals and $1,500,000 for corporations.
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:
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.
When It Ends:
Ongoing
Deadline:
Rolling deadline