Ten Million Dollar Loan Program for Cattle Farmers

AGRICULTURE/FISHERIES--Ten Million Dollar Loan Program for Cattle Farmers

Nova Scotia cattle farmers will have access to a $10-million loan program to help them through the ongoing market problems associated with BSE, Chris d'Entremont, Agriculture and Fisheries Minister announced today, Sept. 28.

"This $10-million loan program demonstrates our continuing commitment to help Nova Scotia's beef and sheep industry through this difficult time. In addition to the recently announced national initiative to reposition the industry, this provincial lending solution will offer immediate help to farmers based on their individual cases," said Mr. d'Entremont.

A single case of BSE in Alberta in May 2003 disrupted the beef and dairy cattle, and sheep marketing system in Canada, closing borders to beef exports.

"In order to help our farmers continue in business we have to address issues of reduced income and reduced access to short-term working capital. This loan will provide that support," said the minister.

The department will cover the processing fee for each borrower. The loan program includes a two-year payment deferral within a seven-year payment period; a minimum interest rate at the Farm Loan Board's cost of borrowing plus one and one-quarter per cent; and a trigger for loan repayment based on a market price for cattle.

The loan is available to the cattle industry for breeding cows/heifer and/or feeder cattle, and to the sheep industry for ewes and feeder lambs.

The loan program will cease once livestock prices reach $1.10 per pound, as determined by sales of feeder cattle through the Maritime Cattle Market or other similar regional auction facility.

Industry consultation about the loan program has taken place with the Nova Scotia Federation of Agriculture and Nova Scotia Cattlemen's Association.

The provincial government will also participate in the advance payments under the Canadian Agriculture Income Stabilization (CAIS) program. These payments would be reconciled when producers when producers make their 2004 claim under the CAIS program for compensation.

"We are pleased that the Nova Scotia government is going to participate in the cash advance payments which will put much- needed dollars in the hands of producers in the near future," said Jim Bremner, president of the Cattlemen's Association. "We continue to encourage them to participate in other aspects of the National Strategic Plan. The fact that they have allotted $10 million to a loan program targeted at cattle producers will be of help to some."

The department has also made it possible for Nova Scotia to join other Canadian provinces to improve the cattle industry through the establishment of a Cattle Marketing Plan. As a signatory to the Canadian Beef Cattle Research, Market Development and Promotion Agency (Agency) Nova Scotia will be able to participate in national and provincial beef promotional and marketing initiatives.

Information on the Cattle Loan Program is available at the Nova Scotia Farm Loan Board office in Truro at 902-896-6506 or in Kentville at 902-679-6009.