Feeder Cattle Loan Guarantee Program

About the Program

The Ontario Feeder Cattle Loan Guarantee Program was established in 1990 to provide low-interest loans to beef farmers in the province through local co-operatives.

The program is backed by a 25 per cent provincial government guarantee which has never been drawn on through the program’s long history, which speaks to the strength of the program.

Since its inception, the program has provided young, beginning and expanding farmers a reliable source of credit at affordable rates with favourable repayment terms.

The program supports the operation of 14 feeder cattle co-operatives across the province. Each feeder cattle co-op is operated by a board of directors who negotiates a credit limit with a lender in order to assist members with the purchase of cattle for further feeding. 

How your local Feeder Cattle Co-op can work for you

A simple five step process:

1. A beef farmer living in Ontario applies to the co-op's board of directors for membership.
2. After becoming a member, applies for a purchase order for the amount of anticipated feeder cattle purchase, maximum of up to $2,000,000 for individuals and $3,000,000 for corporations. 
3. Once member receives purchase order, feeder cattle may be purchased in the name of the co-op.
4. Cattle are identified by the member in a method as determined by the co-op and the lender, and inspected by the co-op supervisor.
5. The co-op facilitates the payment for the cattle. When cattle are sold, they are sold in the name of the co-op and the member’s name and proceeds are applied to the loan.

What the Co-op does for you

• Attractive interest rate
• No payments until cattle are sold (maximum 1 year)
• Financing up to 100%
• Loans may be obtained for home-produced calves, or for purchased feeder cattle
• Limited financial information required for application
• Lending is based on producer’s integrity and ability to feed cattle
• Co-op supplies ID ear tags (not CCIA), handles all paperwork for loan, administers all correspondence with the lender, and insures the cattle

Costs to Members

Each co-op charges an annual membership fee, administration cost, insurance, tag cost and costs associated with the cattle purchase can also be included in loan. A 5% security deposit is required based on the amount of loan and may be refundable 90 days after the loan is paid.

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Administrator Contact Information

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Feeder Co-ops Offer the Advanced Payment Program (APP)

The Advance Payments Program (APP) is a federal loan program administered by BFO on behalf of the 14 feeder cattle co-ops. A local co-op can offer you the interest free advances of APP on up to $350,000 (2023 production period) of your eligible feeder loan during a production period. A simple application form is completed at the same time as the cattle are purchased and accompanying paperwork are processed for the feeder loan. The current application fee is $125 and the interest free advance is calculated as 50 per cent of the expected market value, as determined by Agriculture and Agri-Food Canada.

To view the Ontario Feeder Cattle Loan Guarantee Program’s privacy statement, click here.