Saskatchewan Agriculture and Agriculture and Agri-Food Canada have an agreement allowing the Livestock Loan Guarantee (LLG) program to administer the interest-rebate portion of the Federal Advance Payments Program (APP) in Saskatchewan. This program allows producers in feeder cattle or bison associations to apply for a portion of the interest paid on their advance to be rebated through the APP.
Interest Rebate Program on Feeder Association Loans
The Livestock Loan Guarantee (LLG) program will cease active operation on July 31, 2019. Eligible feeder loans issued up to and including March 31, 2019, are eligible to apply for the rebate program. Applications must be received by May 31, 2019, or will be deemed ineligible.
The producer is required to fill out an interest rebate APP application at the time the schedule is completed.
- The eligible interest rebate period ends on March 31, 2020.
- Interest is rebated at prime lending rate less 0.25 per cent. (i.e. If prime is three per cent the rebate would be 2.75 per cent.)
- When the member pays out the loan principal and interest in full, the LLG program will provide the pay out information to the APP program.
- The APP program will rebate eligible interest to the LLG program, which will forward the funds to the appropriate association.
- The association will distribute the funds directly to the member.
- Eligible advance is calculated by (number of head x eligible amount (based on finished or background).
- The maximum eligible amount for all commodities is $100,000 through all administrators combined.
Other Programs that Administer the APP
LLG breeder members have the option to take a cash advance through other administrators on association calves, but will be required to make their annual payments prior to obtaining this advance and obtain a release from the association.