The Ontario Feeder Cattle Loan Guarantee Program supports the operation of 16 feeder cattle co-operatives across the province. Each feeder cattle co-op is operated by a board of directors who negotiates a credit limit with a lender in order to assist members with the purchase of cattle for further feeding. Members may also be eligible for free interest on a portion of their loan.
How your local Feeder Cattle Co-op can work for you
A simple five step process:
- A beef farmer living in Ontario applies to the co-op's board of directors for membership.
- After becoming a member, applies for a purchase order for the amount of anticipated feeder cattle purchase, maximum of up to $500,000. A member can split purchase order to cover up to four groups of cattle.
- Once member receives purchase order, feeder cattle may be purchased in the name of the co-op.
- Cattle are tagged and notched by the member and inspected by the co-op supervisor.
- The co-op facilitates the payment for the cattle. When cattle are sold, they are sold in the name of the co-op and the member’s name and proceeds are applied to the loan.
What the Co-op does for you
- Attractive interest rate
- No payments until cattle are sold (maximum 1 year).
- Financing up to 100%.
- Loans may be obtained for home-produced calves, or for purchased feeder cattle.
- Limited financial information required for application.
- Lending is based on producer’s integrity and ability to feed cattle.
- Co-op supplies ID ear tags (not CCIA), handles all paperwork for loan, administers all correspondence with the lender, and insures the cattle.
Costs to Members
Each co-op charges an annual membership fee, administration cost, insurance, tag cost and costs associated with the cattle purchase can also be included in loan. A 5% security deposit is required based on the amount of loan and may be refundable 15 days after the loan is paid.
Ontario Feed Cattle Loan Guarantee Program Administrator Contact Information
||Algoma District and Manitoulin Island
||East Central Bruce
||Durham, Victoria, Peterborough, Haliburton, Northumberland
||Hastings, Prince Edward, L&A, Frontenac, Leeds
||Bruce Palmateer (President)
||Niagara, Waterloo, Wentworth, Brant, Oxford, Haldimand, Norfolk
||South East Grey
||Lambton, Essex, Kent, Middlesex, East and south of highway 403
||Dryden, Kenora, Rainy River and Thunder Bay
||Grey, North Bruce
||Carleton, Dundas, Glengarry, Lanark, Prescott, Renfrew, Russell, Stormont
||West Central Bruce
||Halton, Peel, Wellington
Feeder Co-ops Offer the Advanced Payment Program (APP)
BFO is the administrator for the Advance Payment Program (APP) on behalf of the 17 feeder cattle co-ops. The local co-op can offer you the interest free provision of APP on up to $100,000 of your eligible feeder loan during a production period. A simple application form is completed at the same time as the cattle are purchased and accompanying paperwork are processed for the feeder loan. The current application fee is $110 and the interest free provision is calculated as 50% of the expected market value, as determined by Agriculture and Agri-Food Canada.
To view the Ontario Feeder Cattle Loan Guarantee Program’s privacy statement, click here.