Livestock producers who took advantage of a government loan guarantee program have been given additional time to repay amounts owing.
Agriculture Minister Gerry Ritz and Minister of Minister of State for Agriculture Jean-Pierre Blackburn announced on Friday that there will be a stay on the repayments under the Advance Payments Program.
Producers who received advances under the program in 2008-09 were facing large repayments this fall. Now they can spread those obligations out.
Cattle producers have until March 31, 2012, to repay the full amount owing, with regular payments to begin eight months from Oct. 1, 2010. Hog producers have until March 31, 2013, to make full payment, with payments to begin 18 months from Oct. 1, 2010.
Canada Pork Council president Jurgen Preugschas, who farms near Mayerthorpe, said the extension will help producers manage their cash flow and financial obligations.
Canadian Cattlemen’s Association president and Beaverlodge producer Travis Toews agreed the stay will help.
“This flexibility strikes a good balance of working to clear up outstanding amounts while allowing producers to focus on the future.”
The Advance Payments Program gives producers access to credit through cash advances to help their cash flow and provides better marketing opportunities.
“The emergency advances under the APP provided a critical means of assistance when the hog industry was under unbearable economic pressure,” said Preugschas.