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Manitoba Agricultural Services Corporation

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Manitoba Livestock Associations Loan Guarantees

Manitoba livestock owners have long known the advantages of working together for the benefit of all. Some use community pastures, while others may belong to a livestock association and take advantage of lower costs through volume purchases, a reliable source of credit and the experience of its more seasoned association members.

MASC's Manitoba Livestock Associations Loan Guarantee program assists Manitoba farmers who are members of livestock associations with lower cost financing.

  • Features
  • Eligibility
  • Details
  • Contact
  • Links

Program Features

Loan guarantees are available for both feeder and breeder associations. An established association can borrow funds from a private lending institution, and in turn, provide its members with a contract for funds to purchase livestock.

With this arrangement, MASC can provide the lender with a guarantee of up to 25% of the association's loan. Livestock is purchased in the association's name, and for security purposes ownership of livestock remains with the association. Association members are responsible for the care, feeding and marketing of the livestock, and therefore are entitled to any profits made on livestock sales.

Feeder Association Features

Members of a feeder association can take out a maximum of two contracts with the feeder association, which can be used to purchase feeder cattle. Feeder association members can feed their livestock on-farm or in custom feedlots. Financing can also be used for the purchase of heifers to be bred and then sold within a nine-month period. This option offers producers the opportunity to add value to unbred heifers with breeding potential.

For each member of a feeder association, the authorized loan limit for purposes of the guarantee is determined by the association, to a maximum of ${program_details::member_max_loan}.

Breeder Association Features

Financing is available for up to a seven-year repayment term, with the first year being an interest-only period. Members can have up to four contracts with a total maximum approved loan limit of ${breeder_max_outstanding}.

Financing can be used to purchase breeding heifers, bred heifers, cow/calf pairs or cows under the age of four years. Breeder association members must care for their livestock as part of their own operation.


Eligible Applicants

Eligible members of associations must:

  • be 18 years of age and a resident of Manitoba
  • own or lease a farm in Manitoba, and
  • have facilities to care for livestock.

Members of a feeder association must deposit {program_details::min_feeder_deposit}% of their authorized loan limit into their association's Assurance Fund.

Members of a breeder association must deposit {program_details::min_breeder_deposit}% of their authorized loan limit into their association's Assurance Fund.

Assurance Funds are maintained by the lender, and are used to cover overdue or defaulted accounts. These funds are available for refund after the contract is fulfilled (and no arrears exist).

Eligible Associations

Associations must have a minimum of {members_min} members. Associations must elect a Board of Directors and appoint a Secretary-Treasurer to ensure that loans are properly taken out and repaid, and hire a Local Supervisor to monitor livestock purchases and sales, and to ensure proper branding.



MASC guarantees the funds borrowed by an association from its participating lender. Loans can be used by the association to purchase feeder cattle, but cannot be used to purchase feed, facilities or to provide the necessary deposit into the Assurance Fund.

Loans for steer and heifer (not for breeding) purchases are for a maximum 12-month period. Permission may be obtained for an extension to 15 months under special circumstances (e.g. loans on cattle that are not ready for market).

Loans for heifers purchased for breeding purposes are for a maximum of nine months unless inspection by the Local Supervisor confirms they are open, in which case the agreement may be extended for up to three months.

Loans for unbred non-lactating cows are for a maximum of five months.

Loan Maximum

The maximum loan per association member is ${program_details::member_max_loan}. The maximum lending limit for an association is ${program_details::association_max_limit} million.

Interest Rate

Interest rates are negotiated by the association with their lending institution, and most often are more competitive than those given on an individual basis.




For more information about livestock associations and MASC's Manitoba Livestock Association Loan Guarantees, contact:

Livestock Associations Supervisor
Manitoba Agricultural Services Corporation
Unit 100 - 1525 First Street S.
Brandon, MB R7A 7A1
Tel: (204) 724-4153
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