March 3, 2010

Canadian hog loan loss reserve programme uptake at 25%

The Agriculture and Agri-Food Canada estimates 25% of Canadian pork production is now being funded by loans offered through the federal Hog Industry Loan Loss Reserve Program.

The programme is designed to allow pork producers to restructure existing debt and term out payments over a longer period.

Earlier, the federal government extended the application deadline from March 1 to March 26 and its share of the risk has been increased to 90% on loans used to repay advances received under the Advance Payments Program.

George Pikor, the special advisor Business Risk Management Programs with Agriculture and Agri-Food Canada, said it is hoped the changes will make the programme more accessible to some producers.