Stocker Loans

Stocker Loans

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Stocker Loans are an important aspect of MASC’s direct lending. These loans assist producers by establishing short-term feeder livestock financing.


Stocker Loan Purposes

  • 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.

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.

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 five 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).
  • Cattle must have a minimum weight of 400 lbs (181 kg).
  • Weaned lambs must have a minimum weight of 45 lbs (22.5 kg).

LPI / Stocker Loan Interest Rebate

  • 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 Rate Rebate Example

A producer uses a Stocker Loan to purchase 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 %
  = $

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