Manitoba Livestock Associations Loan Guarantees

This program provides producers who are members of livestock associations with the benefit of lower costs associated with financing and higher volume transactions of feeders and fed cattle. MASC guarantees funds borrowed by the associations from participating lenders to purchase feeder cattle and breeder cattle to enhance their livestock operations.

Qualifications

All participants must be approved by MASC, the lender, and the association.
Feeder association members can feed their livestock on a custom basis. Breeder association members must care for their livestock within their own operation.

The maximum loan per association member is $750,000. The maximum lending limit for an association is $12,000,000.
A livestock association must consist of a minimum of 15 members, and must retain legal ownership of the livestock, which must be identified with the association’s brand. The association sells the livestock on behalf of its members and deducts loan repayments and costs from the sale proceeds before forwarding the net proceeds to its members.
Each member of a feeder association must place 5 per cent of their authorized loan limit into the association’s assurance fund. Each member of a breeder association must place 10 per cent of their authorized loan limit into the association’s assurance fund.
Financing for members of a breeder association can be established on up to a 7-year repayment term, with the first year being an interest-only period.

The association arranges with an approved lender for financial services and for administration of an MASC guaranteed loan.