Raising livestock in a fluctuating market can require significant cash flow and a certain amount of financial security.
MASC's Stocker Loan program provides short-term financing for producers who purchase feeder cattle and lambs, or retain owned calves and lambs for feeding.
Loans of up to $ are available, with interest terms of up to 18 months for cattle and 5 months for sheep.
Qualified applicants for a Stocker Loan can be an individual who personally operate the farm to which the loan applies, joint farm units, partnerships, corporations, or cooperatives.
Cattle must have a minimum weight of 400 lbs (181 kg) to be eligible for a Stocker Loan.
Weaned lambs must have a minimum weight of 45 lbs (22.5 kg).
The maximum amount for a Stocker Loan is $.
Interest is charged at MASC's 1-year term rate. Stocker Loans with terms over 12 months use the 2-year rate.
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 Stocker Loan disbursed amount.
To be eligible for this rebate, the LPI policy purchased must have an insurable value equal to or greater than the disbursed Stocker Loan amount.
Example:
A producer finances calves worth $ each for a total Stocker Loan of $. The producer also purchased a WLPIP Feeder Cattle policy for cwt at a coverage level of $ per cwt, for a total insurable value of $.
Since the value of the policy exceeds the Stocker Loan amount, the producer will receive a credit of $ ($ x per cent).
For cattle, repayment is to be made upon sale of cattle, or within 18 months for stocker steers / heifers (12 months for breeding heifers), whichever comes first.
For lambs and feeder cows, repayment is to be made upon sale of livestock, or within 5 months, whichever comes first.
Security consists of the livestock financed by MASC. This program can cover up to 100% of the livestock purchase price.
For more information about a Stocker Loan from MASC, talk to a MASC Loan Specialist at a .
MASC's Manitoba Livestock Associations Loan Guarantee program assists Manitoba farmers who are members of livestock associations with lower cost financing.