Ontario Beefing Up Support for Cattle Farmers

A $240 million increase to the Feeder Cattle Loan Guarantee program will strengthen Ontario’s beef sector.

Read Also

Organization focuses on female farmers

In French, the feminine version of “entrepreneur” is “entrepreneure.” The letter E at the start and end of that word…

“Our province’s Grow Ontario Strategy commits to strengthening the province’s agriculture and food supply chain and increasing agri-food trade by eight per cent per year,” said Rob Flack, Minister of Agriculture, Food and Agri-business (OMAFA).

The increase doubles the loan program’s scope to $500 million in low-interest finance to support short-term needs and long-term growth of feeder cattle co-operatives and their members.

Additionally, the government pledged $2 million over four years to the Ontario Beef Marketing Development program.

Why it matters:

Increased funding for the guaranteed loans provides sector stability and opportunities for existing and young farmers while new marketing dollars build demand.

The Ontario agricultural loan guarantee program has safeguards to minimize the risk of a guarantee claim, provides a 25 per cent guarantee of the loan value, and has never been used.

“Increasing the government guarantee and the individual loan limits under the Ontario Feeder Cattle Loan Guarantee Program will allow the program to better respond to the escalation in cattle prices,” said Craig McLaughlin, Beef Farmers of Ontario president. “And growing interest from young and beginning farmers, as well as existing farmers, who value the program for its reliable access to affordable credit.”

Doubling the maximum loan available and making administrative changes allows Minister Flack to move funding allocations between feeder co-ops, providing faster and more effective avenues to meet producer demand and industry support.

The investment in the Ontario Beef Marketing Development program will strengthen competitiveness and support provincial and international trade shows and trade missions for potential out-of-market buyers to tour Ontario beef farms and processors.

“We have an outstanding product and are well-positioned to increase market share of Ontario beef in many key global markets,” said John Baker, Ontario Beef Marketing Development program director. “This investment will help augment our market development efforts both domestically and internationally.”

In the last five years, Baker said there’s been heavy investment in industry-led initiatives to grow domestic and export markets for Ontario-branded beef, maximize its value and share the industry’s sustainability story.

“We’re appreciative of the Government of Ontario’s commitment to these valuable programs,” said McLaughlin. “Both of which play a significant role in our sector’s ability to maintain and grow a consistent supply of Ontario beef for our communities here at home and around the world.”