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August 06, 2003
MANITOBA ANNOUNCES $100 MILLION AGRICULTURE LOAN PROGRAM
New Loans to Assist Producers Suffering Cash Flow Challenges Due to BSE: Wowchuk
Manitoba ruminant producers will have access to a new $100 million loan program that will provide them with the necessary operating funds at a reduced interest rate to address cash flow challenges arising from BSE, Agriculture and Food Minister Rosann Wowchuk announced today.
"This program is intended to deliver funding to those producers who are not eligible for funding under the feeder program," said Wowchuk. "Producers raising all varieties of ruminant livestock have been hit hard by BSE. These loans will provide these producers with much needed funding in order to address cash flow challenges."
"We will be discussing this program with the federal government and we hope the federal government will join us in supporting Manitoba producers."
Today’s announcement builds on Manitoba’s short-term action plan on BSE which includes a re-allocation of the existing $15 million BSE recovery program and an additional $2 million to promote the development of more home-grown processing and provide additional slaughter opportunities for Manitoba cattle producers.
The new loan program will be administered through Manitoba Agricultural Credit Corporation (MACC) and will offer one-year, $50,000 loans at an interest rate reduced by 1.5 per cent to 3.25 per cent. Producers who are under 40 years old at the time of application will have this interest rate further reduced to 2.25 per cent.
"Young producers face enough equity challenges without issues like BSE," said Wowchuk. "Reducing the interest rate an additional one per cent recognizes the critical situation many of our younger producers are in."
The program is open to producers who are:
• ruminant producers (such as cattle, bison, sheep, goats); and
• can demonstrate they have experienced a financial setback as a consequence of BSE.
At the end of the one-year program, producers will have the option of extending and/or increasing their loan based on their specific financial situation.
"Reopening the border to live cattle exports remains our top priority," Wowchuk said. "Until the border reopens, we have asked the federal government to assist us in delivering much needed financing for producers negatively affected by the border closure."
Manitoba’s action plan on BSE also includes weekly meetings between Manitoba cattle producers and Manitoba Agriculture and Food to ensure that strong lines of communication are maintained between the government and the industry, and a commitment to work with other provincial governments to reopen borders and promote the safety and quality of Manitoba cattle and beef.
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