Lending for Picture Butte feeder co-op set to resume
After a lengthy process, Picture Butte Feeder Co-operative is now fully operational after the Alberta government had previously suspended its access to the Feeders Association Loan Guarantee program .
The provincial ministerial order that had been in place since Jan. 27 was lifted May 1.
In conjunction with restructuring officer Alvarez & Marsal Canda Inc., the participating lenders and regulatory authorities have taken steps to see the association was approved to operate. Profit payments are being processed and normal lending is set to commence May 26.
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“This has been an exceptionally trying time for the many members of PBFC that have had their operations put on hold through no fault of their own. We recognize the pace of business has no sympathy for interruptions and acknowledge the very tough financial position members were placed in,” George L’Heureux, chair of the Feeders Associations of Alberta, said in a press release to the Western Producer.
“Through this challenging period, FAA has maintained a focus on the protection of the membership of both PBFC as well as that of FAA as a whole and to see PBFC return to operations while protecting the Feeder Association Loan Guarantee program.”
There is still work ahead for the co-op to normalize processes and operations, including electing a new independent board of directors.
Cody McBride was hired as supervisor effective May 5. He served as the local supervisor of for the Alberta Choice feeder Co-op and held multiple roles at ATB Financial, including beef industry financing.
“We are confident that his extensive background with livestock, finance and feeders associations makes him an excellent candidate for the post,” said L’Heureux.
“(Agriculture) minister RJ Sigurdson’s team has been very supportive throughout this process, with the goal of having PBFC returned to full operational status. We are thankful for the minister’s continued support and commitment to FALG which has been unwavering.”
A key step to lifting the ministerial order was an inventory count, which was conducted in March, according to RealAgriculture.
Inspectors visited 52 farms and feedlots, with the provincial audit showing the correct number of cattle on hand. It found the animals were properly identified and in good condition with no shortfall in cattle or deposits.
Feeder associations were informed in 2023 that provincial inspectors would be focusing on member eligibility in future audits. The restructuring officer had been tasked with developing/revising PBFC’s internal operating policies and governance structure.
Picture Butte Feeder Co-op is by far the largest of the province’s 45 feeder associations for both financing and the use of FALG.
Records showed in January that members owed PBFC $281,266,976 under both the purchase and equity loan programs, and that the PBFC owed the same amount to its lenders.
The suspension from the loan program stemmed from a laundry list of claims, including allegedly accepting ineligible feeder members, using guaranteed loan proceeds for improper purposes, providing more allowances than allowed and obstructing provincial inspections.
The board of directors resigned and the previous supervisor and administrator let go after Alberta Agriculture’s nine-month-long investigation.
“Feeders Associations of Alberta was able to play a role as a communications conduit for the minster and has been happy to assist the restructuring officer wherever we could in the completion of their court ordered mandate,” said L’Heureux.
“FAA looks forward to working with the minister and regulatory services on improving the FALG for the future to see this valuable program continue to thrive and provide the industry support we have come to count on.”
Source: producer.com