Stocker Loans are an important aspect of MASC’s direct lending. These loans assist producers by establishing short-term feeder livestock financing.
What can a Stocker Loan be used for?
- Stocker Loans are available for the purchase of steer and heifer calves, feeder cows and lambs.
- Loans can be used as a cash advance against the producer’s own feeder cattle or lambs (i.e. to retain calves or lambs to feed out).
- Funds are also available to producers to purchase unbred heifers to be bred and sold within a 12-month period.
- Loans cover up to 100 per cent of the livestock purchase price.
What are the Qualifications?
- Applicants must be Manitoba residents who are at least 18 years of age and Canadian citizens or have lawful permanent residence status.
- Applicants must personally operate the farm to which the loan applies.
- The farm must be considered potentially viable and meet security requirements.
What are the Terms and Conditions?
- Loans are available up to $.
- Financed cattle must be sold within 18 months for stocker steers/heifers, or within 12 months for breeding heifers, at which time the loan is repayable in full.
- Loans with a term longer than 12 months will use MASC’s two-year interest rate. Feeder cows and lambs will be financed at MASC’s one-year rate.
- Loan repayment for lambs and feeder cows is to be made upon sale of livestock, or within 5 months, whichever comes first.
- There are no restrictions on where the feeders are bought and sold.
- Livestock may be fed on-farm or placed in a feedlot (provided it is approved by MASC).
- Two contracts are permitted per yard site.
- Cattle must have a minimum weight of 400 lbs (181 kg).
- Weaned lambs must have a minimum weight of 45 lbs (22.5 kg).
Stocker Loan Interest Rebate with LPI Purchase
- Producers who finance livestock with an MASC Stocker Loan and purchase a Livestock Price Insurance (LPI) policy for Feeder Cattle are eligible for a one-time interest rebate of per cent of the disbursed amount.
- Insurable value of the LPI policy must be equal to or greater than the disbursed Stocker Loan amount.
Interest Rebate Example
A producer uses a Stocker Loan calves, and each calf is worth $. The producer also purchases an LPI Feeder Cattle policy for cwt with coverage of $ per cwt.
Stocker Loan = calves x $ per calf
LPI Feeder Cattle policy = cwt x $ per cwt
Since the value of the LPI policy exceeds the Stocker Loan amount, the producer is eligible to receive a rebate. Interest Rebate = $ x per cent