Feeder Cattle Loan Guarantee Program
The Ontario Feeder Cattle Loan Guarantee Program supports the operation of 18 feeder cattle co-operatives across the province. Each 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.
Feeder cattle co-operatives located in Northern Ontario
Dryden, Rainy River, Kenora and Thunder Bay
807.482.3948 ext: 2498
How your local feeder cattle co-operative can work for you
A simple five step process:
- A beef farmer living in Ontario applies to the Co-operative’s Board of Directors for membership.
- 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.
- Once member receives purchase order, feeder cattle may be purchased in the name of the Co-operative.
- Cattle are tagged and notched by the member and inspected by the Co-operative supervisor.
- The Co-operative facilitates the payment for the cattle. When cattle are sold, they are sold in the name of the Co-operative and the member’s name and proceeds are applied to the loan.
What the Co-operative 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-operative 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-operative charges an annual membership fee, administration cost, insurance, tag cost and costs associated with the cattle purchase can also be included in the loan. A 5% security deposit is required based on amount of loan, refundable 90 days after loan is paid.