Cattle producers in feeder associations in Saskatchewan can now apply for rebates of interest paid through the Advance Payments Program (APP).
Saskatchewan Agriculture announced this week it had signed an agreement with Agriculture and Agri-Food Canada to allow the provincial Livestock Loan Guarantee (LLG) program to administer the interest-only portion of the federal APP in Saskatchewan.
Thus, a producer in a feeder association — one with an eligible feeder advance, the province emphasized — may apply for a portion of the interest paid on that advance to be rebated through the APP.
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An LLG member would apply for the APP when the feeder advance is taken out through a feeder association. He or she may be eligible for an interest rebate on the first $100,000 advance. The rebate is based on prime less 0.25 per cent.
Then, when the LLG member sells the livestock, the loan principal and interest are paid in full. The LLG program collects the payout information from eligible associations and provides that to the APP.
The APP then rebates the eligible interest to the LLG program, which forwards the funds to each association — which then distributes those funds directly to members.
“This rebate will not solve all the problems facing the Saskatchewan cattle industry, but it will provide benefits for producers planning to retain or purchase additional feeder cattle in the LLG program,” provincial Agriculture Minister Bob Bjornerud said in a release Friday.
Producers can also access the full APP through the Canadian Livestock Advance Association, the province noted in a fact sheet. LLG breeder members have the option to take a cash advance on association calves, but must make an annual payment before obtaining that advance.
