Man. extends guarantee on farmers’ credit lines

The total cap has been raised on a program guaranteeing 25 per cent of a Manitoba farm’s operating line of credit — a program now made permanent, the province announced Monday.

The Operating Credit Guarantee (OCG) program, operated by Manitoba Agricultural Services Corp. (MASC), gives participating banks, credit unions and other financing agencies a guarantee on 25 per cent of a farm’s or farm business’ operating line of credit.

The “maximum program activity” allowed under the OCG has been raised to $25 million from $15 million, Agriculture Minister Rosann Wowchuk said Monday.

“The cost of doing business has
increased significantly for agricultural operations and the funds
available to producers’ lines of credit must keep pace with
today’s financial realities,” she said.

Raising
the program limit will allow farms using the OCG program to leverage up to $100
million in private sector financing, Wowchuk said.

According to MASC, the maximum operating loan to be guaranteed under the OCG is $450,000 for individuals and single shareholder corporations, and $700,000 for partnerships, corporations, and co-operatives.

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