Media Release - Pork producers welcome details of federal programs
Thursday, October 1, 2009
For immediate release
Pork producers welcome details of federal programs
October 2, 2009 (Winnipeg, MB) – Manitoba’s pork producers will finally be able to begin the difficult process of deciding their next steps now that the federal government has released details of the aid package originally announced in August – and not a moment too soon, according to the Manitoba Pork Council (MPC).
“We’re relieved to see that the government has finally made this information public,” says Karl Kynoch, MPC chairman. “Although the federal programs won’t provide the answer for every hog farm in Manitoba, now at least producers can move forward and begin to make some critical, crucial business decisions.”
One of the most positive steps is that starting October 5, pork producers can contact their lending institutions to begin developing long-term business plans and apply for loans which will be guaranteed by the federal government under the Hog Industry Loan Loss Reserve Program, explains Kynoch. Under the terms of the federal program, lenders will negotiate loans for each specific farm operation and will base their decisions on the viability of the business plans. Producers can identify participating banks and credit unions (starting Oct. 5) by going online to www.agr.gc.ca/HILLRP.
Beginning October 8, producers will be able to access registration forms for the Hog Farm Transition Program on the Canadian Pork Council website www.cpc-ccp.com. The program is retroactive to April 1, 2009, meaning that producers who depopulate their barns before applying for the program will be eligible. However, applications will be based on a tendering process in which producers will bid for the amount of money required to take their barns out of operation for at least three years.
“Some producers just can’t afford another loan, and the transition program may be their only alternative,” says Kynoch. “The bidding process will be a major challenge because producers can submit bids, but they still have to wait to see if their bids are accepted. The Canadian Pork Council is working hard to make this process move as quickly as possible.”
MPC will work with the government and the Canadian Pork Council to get information to producers in the coming weeks.
Manitoba’s 800 hog farmers … Caring for animals. Protecting the environment. Producing quality pork.
For more information, contact: *Backgrounder attached.
Kelly Funke, Manager, Karl Kynoch,
Communications and Media Programs Chairman
Manitoba Pork Council Manitoba Pork Council
(204) 235-2303/(204) 791-6395 (204) 535-2387
kfunke@manitobapork.com
BACKGROUNDER (courtesy CPC)
Hog Industry Loan Loss Reserve Program (HILLRP)
The Hog Industry Loan Loss Reserve Program is designed to inject additional cash into hog operations in the form of government guaranteed loans. This cash will help free up operating credit and ease short term liquidity problems by converting short term debt into longer term loans. The terms of the loans will be negotiated between lenders and applicants but shall not exceed 15 years. Where possible, a maximum 10-year term will be encouraged.
Loan amounts approved by lenders will be based on a borrower’s business plan and the size of operation, established from recent production and sales records.
Maximum loan amounts will be based on the following rates per animal produced over the course of the last or current tax year:
• $85 per market hog
• $30 per weaner
• $25 per iso weaner
Loan approvals will be established on a credible business plan, validated by lenders, demonstrating that the borrower has reasonable potential to repay the loans and maintain a viable agricultural operation.
Loans issued under the program will be at competitive commercial interest rates and may be subject to various administrative fees charged by commercial lenders. Security requirements for loans, including personal guarantees, will be at the discretion of lenders who will consider the reduction in risk provided by the program.
Loans issued under the HILLRP must first be used to reimburse any outstanding 2008-09 Advance Payments Program (APP) advances. A producer cannot receive benefits (loans or payments) from both the HILLRP and the Hog Farm Transition Program.
Producers should consult with participating financial institutions starting in mid-October for further details on the requirements necessary to qualify for the HILLRP loans.
The application deadline is scheduled for March 1, 2010 but producers are encouraged to present their business plans to lenders as soon as possible to ensure access to the government-backed funding.
For immediate release
PROGRAM AVAILABLE FOR CANADIAN PORK PRODUCERS
OTTAWA, Ontario, October 2, 2009 – Canadian pork producers can start applying for
– Canadian pork producers can start applying for
government-backed loans on Monday. Applications will also be available for the Hog Farm
Transition Program next week.
“We’ve worked in lock-step with the Canadian Pork Council to make sure the details of these important programs hit the target for producers at the farm gate,” said Agriculture Minister Gerry Ritz. “We know the Canadian pork ind ustry can be profitable and that’s why we’re offering government-backed loans to help them weather the current economic storm. But we also know the industry needs to restructure and we’re working with the Canadian Pork
Council to deliver funding for those who need to transition to another sector.”
“These programs work hand-in-hand and they are flexible to meet producers’ individual needs,” said Jean-Pierre Blackburn, Minister of National Revenue and Minister of State (Agriculture). “In the end, putting Farmers First means letting farmers choose the program that works best for them.”
Starting Monday, October 5, 2009, many financial institutions, including Farm Credit Canada, will be ready to work with pork producers to develop long -term business plans and deliver government-backed loans. Producers can check www.agr.gc.ca/HILLRP to find out which institutions are currently participating. The commercially based loans will be negotiated for each specific farm operation and based on viable business plans. By using governmentbacked loans, Canadian pork producers will have better access to credit and the opportunity to restructure for the long term.
The Government of Canada and the Canadian Pork Council are also partnering to deliver $75 million through the Hog Farm Transition Program. The Canadian Pork Council will have registration forms for the program available to producers on October 8, 2009. The program will be retroactive to April 1, 2009, therefore, producers who depopulate their barns prior to
applying for the program will still be eligible. Applications will be based on a tendering process that allows producers to bid for the amount of funding they require to take their barns out of operation for at least three years. Producers will be able to visit the Canadian Pork
Council’s web site www.cpc-ccp.com for the most up-to-date information and registration forms on October 8, 2009.
"These are important programs; one will allow producers to access credit they need to manage through the current difficulties while the other will provide assistance to set aside production,” said Jurgen Preugschas, Chair of the Canadian Pork Council. “We have been working in collaboration with Minister Ritz to ensure that these programs address the needs of producers."
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These programs are in addition to the $17-million International Pork Marketing Fund the Government of Canada is investing for market research, promotion and access initiatives to find new customers for Canadian pork products.
For more information on these programs, visit: www.agr.gc.ca/HILLRP or call 1-877-842-5601.
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For more information, media may contact:
Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972
Meagan Murdoch
Press Secretary
Office of the Honourable Gerry Ritz
613-773-1059
Gary Stordy
Manager, Public Relations
Canadian Pork Council
613-236-9239 ext. 277
Sophie Doucet
Press Secretary
Office of the Honourable Jean-Pierre Blackburn
613-608-3252