Cattlemens group is lauding increase to lending program for buyers

GUELPH – The Ontario beef industry has said it is pleased with the provincial announcement that there is  an increase in the amount of funding available for the Ontario feeder cattle co-operative program from $80- to $130-million on Aug. 4

“This is welcomed News for our industry. The Ontario feeder cattle co-operative program has been a successful venture for over 20 years. This much needed increase of funding to the program will ensure continued support for the cattle feeder sector in Ontario and will provide the resources to help our young farmers establish themselves in the cattle industry,” said Curtis Royal, OCA president.

The program, formed in 1990, is administered by the Ontario Cattlemen’s Association (OCA) on behalf of the Ontario Ministry of Agriculture.

It uses a provincial guarantee to provide competitive lending to members of all 19 co-operatives in Ontario.

In 2007, OCA agreed to administer the interest free provision under the Federal Agriculture Marketing Programs Act, within the Ontario program. The availability of the program has triggered growth within co-operatives.

“Since the inception of this valuable program, over 1.3 million cattle have been purchased by more than 3,000 members,” said Ross Jeffray, chairman of the Ontario feeder cattle co-operative program “The number of young farmers in this program is well above the industry average, indicating the need for such a program to attract young farmers to the industry. The success of this program is a direct result of diligent directors and staff, the management and honesty of the members, and the support of government, lenders, sales barns, dealers, truckers, and packers.”

Through the years there have been modifications to the program, but the principles remain the same. The board of directors approves members and their purchase requests, a 5% assurance deposit is required, and cattle are bought and sold in the name of the co-operative. Currently, members can borrow up to a maximum of $250,000.

The OCA is a grassroots organization representing 19,000 beef producers in the province and provides leadership to cattlemen from all sectors of the industry.