Type of Program:
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.
When It Ends:
apply to the co-op's board of directors for membership;
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.
Maurice (Moe) Muise learned the ins-and-outs of government while an employee of the Government of Canada in Ottawa for 10 years. His current focus is helping small businesses in Ontario to identify and maximize government grants to grow their business.
Click here to learn more about Moe’s background and how he can help your business.