Released on April 22, 2004
The Government of Saskatchewan has announced amendments to The Cattle Feeder Associations Loan Guarantee Regulations, 1989, of the Livestock Loan Guarantee Program, due to the impact of BSE."Producers have requested extensions to the due date for their feeder loans because of reduced market returns, caused by the United States border closure to cattle exports," Agriculture, Food and Rural Revitalization Minister Mark Wartman said. "We are pleased to introduce these amendments in further support of our livestock producers."
The amendments are intended to extend the period for repayment of feeder loans, and to extend the period for sale of heifers and steers. The extension period expires on November 30th, 2004.
"Under normal market conditions, the feeder loans are repaid when feeders are sold or when heifers are transferred to a long-term cow loan," Wartman said. "But, declining market returns have caused producers to hold on to the feeder heifers and steers that they would normally sell."
Wartman said that due to losses many producers have suffered since the discovery of BSE, it is not possible to make up market shortfalls. The extension of the feeder loan will allow those producers to continue with the existing loan until market conditions further improve.
The Livestock Loan Guarantee Program promotes the growth of Saskatchewan's livestock industry by providing producer associations and individual feedlot operators access to credit at favourable interest rates. More than 5,000 members belong to 120 associations, with guarantees provided on about $120 million in loans annually.
-30-
For More Information, Contact:
| Scott Brown Agriculture, Food and Rural Revitalization Regina Phone: (306) 787-4031 |