February 27, 2008

Canada improves loan program for livestock farmers

Canada's hog and cattle farmers will now have a total of CA$3.3 billion (US$3.3 billion) in loans to counterbalance high feed costs and low prices, according to agriculture minister Gerry Ritz.

Individual farmers could loan up to CA$400,000 of which the first CA$100,000 would be interest-free, said Ritz.

The previous maximum cash advance was CA$25,000.

Canadian livestock farmers have suffered from poor returns due to exorbitant grain prices, low meat prices and an appreciating Canadian dollar, which has also affected the export of meat and livestock.

The Parliament would be amending a law, and the changes would give producers easier access to cash advances and increase available amounts, said Ritz. The money could start flowing in March, he added.

Clare Schlegel, president of the Canadian Pork Council, said the improved loan program would relieve the struggling hog farmers.

CA$1 = US$1.02 (February 27, 2008)