Feeder Cattle Loan Guarantee Program

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:

1. A beef farmer living in Ontario applies to the co-op's board of directors for membership.
2. 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.
3. Once member receives purchase order, feeder cattle may be purchased in the name of the co-op.
4. Cattle are tagged and notched by the member and inspected by the co-op supervisor.
5. 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 90 days after the loan is paid.

Ontario Feed Cattle Loan Guarantee Program Administrator Contact Information

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.