Pilot Loan Program for Beef Producers

A pilot loan program to encourage and support marketing opportunities in the province's beef sector was announced today by Ernest Fage, Minister of Agriculture and Marketing.

The Beef Development Loan Pilot Program will be administered by the Nova Scotia Farm Loan Board. It is the first loan program focused on new market opportunities for a specific sector.

Developed in partnership with the industry, it will assist beef producers in targeting specific markets and capitalizing on new market opportunities, particularly the recently announced Atlantic Branded Beef Program from Co-op Atlantic.

"The province's beef sector produces quality products and has a lot of potential," said Mr. Fage. "This loan program, with the full support of the Nova Scotia Cattlemen's Association, will give producers the assistance they need to take advantage of some new and exciting marketing opportunities, like the Atlantic Branded Beef Program."

This new loan program will help Nova Scotia producers meet the higher production levels required by Co-op Atlantic through financing the purchase of beef breeding stock or feeder cattle for herd expansion.

The maximum available loan for an individual will be $150,000. For partnerships or corporations, the maximum loan will be $450,000. Financing will be available for up to 80 per cent of the purchase price or market value of the cattle, whichever is less. Repayment options consist of a fixed payment schedule or a fluctuating schedule based on market prices. Loans are repayable over a maximum eight years at 7.95 per cent interest, the lowest interest rate offered by the board for long-term loans. Interest rates charged on board loans are subject to change on a quarterly basis.

"The Nova Scotia Farm Loan Board is geared toward providing flexible and agriculturally unique financing options to farmers that may not otherwise be available from a commercial financial institution," said Derrick Jamieson, director of the Farm Loan Board. "This is a unique, sector-specific program we hope to offer to other sectors in the future."

The program will be piloted this fiscal year and will be assessed based on market changes, new opportunities and producer participation. The Farm Loan Board plans to use this program as a template for future programs targeting new markets in other livestock or crop sectors, if the need is identified by those commodities.

The program is open to persons age 19 or older who currently maintain a beef herd of a minimum of 15 cows/beef heifers and/or a minimum of 50 feeder cattle. A business plan with an identified market opportunity is also required.

Applications are now available through Farm Loan Board offices in Truro and Kentville or through the board's website at http://agri.gov.ns.ca/flb .