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Advance Payments Program for Livestock
$100,000 Interest Free Loans
Cattle, hog, lamb and market sheep producers can now benefit from the Advance Payments Program which features up to $100,000 in interest free loans. Producers may also qualify for an additional $300,000 in loans at prime -1/4% under the same program. Producers may know us through financing their cash crop enterprise. Now we have an option for livestock.
Program Facts…
- This Agriculture and Agri-Food Canada program is designed to help producers with their marketing program
- The first $100,000 is interest free
- An additional $300,000 is available at prime -1/4%
- The loan limit is the lesser of the government portion of a producer’s CAIS reference margin or a producer specific amount based on number of animals and the advance rate
- Producers must participate in the Canadian Agricultural Income Stabilization program
- Application http://www.accfarmersfinancial.ca/application_pdfs/app-livestock.pdf
deadline: February 28, 2008
- Final loan repayment deadline: September 30, 2008
Cattle Loan Rates and Options:
| Options |
Advance Rate per CWT* |
| Calves (newborn) to 700 lbs |
$45.75 per CWT |
| Cattle 700-900 lbs |
$45.75 per CWT |
| Finished cattle up to 1,250 lbs |
$45.75 per CWT |
| Finished cattle 1,250 lbs plus |
$45.75 per CWT |
- Advances are based on cattle numbers and class make-up
- Cattle producers can apply more than once to receive their pre-qualified loan maximum
Hog Loan Rates and Options:
| Options |
Rates per 100 kg dressed* |
| Weaned pigs being raised to market hog weight |
$70.11 per 100 kg dressed weight and 88 kg dressed weight per hog ($61.70 per pig)
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| Feeder pigs being raised to market hog weight |
$70.11 per 100 kg dressed weight and 88 kg dressed weight per hog ($61.70/hog) |
| Feeder pigs |
$26.08 per pig |
| Weaned piglets |
$17.02 per piglet |
*Rates are subject to chang
- Advances are based on hog number and market weight
- Pork producers may apply for an advance twice per year (two six-month periods)
- If weaned piglet, feeder pig or hog inventories remain relatively consistent over a six-month period, producers may be eligible for advances up to 6 months at a time
Lamb and Market Sheep Loan Rates and Options:
| Options |
Rate per head* |
| Lambs to be marketed at 45-60 lbs |
$49.25 per lamb |
| Lambs to be marketed at 61-79 lbs |
$63.55 per lamb |
| Lambs to be marketed at 80-109lbs |
$75.05 per lamb |
| Lambs to be marketed at 110 lbs plus |
$79.73 per lamb |
| Sheep |
$58.50 per sheep |
*Rates are subject to change
- Advances are based on animal numbers and class make-up
- Producers may apply more than once to receive their pre-qualified loan maximum
How much do I qualify for?
| Here is a hog loan calculation to illustrate: |
Producer specific amount: 1,000 pigs X .88 dressed weight rate per hog X $70.11 advance rate per 100 kg of dressed weight = $ 61,697
Producers’ CAIS reference margin = $90,000
Government portion of CAIS reference margin at second tier coverage level is 66.5%:
$90,000 X 66.5% = $59,850
In this case the producer would receive the lesser of the two or an interest-free advance of $59,850 in the first six month period. However the producer can then immediately apply for a second advance for a second six month period.
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