Support for growth in Alberta’s livestock sector


Source: Source: Alberta Agriculture and Forestry

Changes are being made to Alberta’s Feeder Association Loan Guarantee Program to help support competitiveness and growth in Alberta’s livestock industry.

The Feeder Associations Guarantee Regulation is being amended to increase loan limits from $1 million to $2 million and increase the amount member associations can receive in advance based on the value of their livestock.

The Feeder Association Loan Guarantee Program supports favourable lending rates for producers to buy, feed and sell their livestock. Government provides loan guarantees so that cattle feeder associations can negotiate better lending rates from financial institutions.

“Feeder associations in Alberta are facing challenges in accessing the capital they need. We have the backs of our producers – that’s why we are introducing these amendments. With this move, we are showing a prime example of our government’s responsiveness to industry and commitment to supporting the evolving needs of rural businesses.”

Oneil Carlier, Minister of Alberta Agriculture and Forestry

Regulation changes

  • Increasing the individual and joint membership loan limits from $1 million to $2 million lets feeder associations distribute their fixed costs across a greater number of livestock and provides increased access to capital.
  • Increasing the maximum equity advance for risk-mitigated cattle from 50 per cent to 75 per cent gives members of feeder associations access to more equity to generate more favourable cash flow for their operations.

“We are pleased that government has moved forward with these changes. Our members will have greater flexibility to operate. They will have increased access to capital which will help in making their operations more robust and responsive to increased demand for feeder cattle.”

Eric Boot, chair, Feeder Associations of Alberta Limited

In 2016, the Alberta government increased the provincial loan guarantee to $100 million from $55 million for feeder association members buying and feeding livestock for market.

Alberta is the beef capital of Canada, with more than 40 per cent of the national herd, making the cattle industry a key driver of Alberta’s rural economy.


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