"The hog industry in Alberta is facing unprecedented low prices caused by uncontrollable global factors," says Ed Stelmach, Minister of Alberta Agriculture, Food and Rural Development. "Everyone recognizes that the hog industry is cyclical in nature, but no one could have predicted that prices would fall this far, this fast."
Producers can now get a quick cash injection of up to $50,000, as part of a redesigned package of bridge financing options. The changes include provisions made under the Agriculture Financial Services Corporation (AFSC) Developing Farmer Loan Program: the maximum amount available under a "quick injection" loan is being increased from the current $15,000 to $50,000; and, producers will have an option to defer payments for principle and interest during the first two years of the loan.
Preliminary estimates are that up to $15 million in funds could be advanced under this initiative. Hog producers are encouraged to contact their local AFSC loans office to make an appointment to discuss their options.
Changes have also been made to the Farm Income Disaster Program (FIDP), to allow outstanding accounts payable to be included in the application and to recognize producers' year-end that are different from December 31. These producers will be able to apply under FIDP sooner than in the past.
The revamped Developing Farmer Loan program is available to producers to restore working capital and assist with financial restructuring. FIDP is available to producers suffering from disastrous declines in whole-farm income. Both programs are administered by AFSC.
"These changes open up a number of financial options for all hog producers in the province," says Roger Charbonneau, chairman of the Alberta Pork Producers Development Corporation. "We are dealing with desperate financial times. These new options will help hog producers stabilize their operating credit and begin the process of rebuilding."
"It's clear that Alberta has the best combination of safety nets in the country," adds Stelmach. "These changes provide several options for the hog industry during difficult times. We're continuing to offer better flexibility to producers without aggravating existing international trade agreements, so everybody benefits."
AFSC is a provincial Crown corporation with 49 offices across Alberta. It provides farmers and agri-businesses with unique financial services, including crop insurance, income protection and financing.
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