By Cheryl Russwurm, Provincial Program Supervisor: Ontario Feeder Cattle Program and Ontario Beef Breeder Co-op Programs

2006 was a very positive year for the Feeder Finance Program. On a provincial basis, a new Order in Council was signed in June, which allowed for the maximum loan limit to increase from $125,000 to $250,000. It also allowed the loan to be divided among four groups of cattle, versus the previous two. These changes, along with a more positive outlook for the beef industry attracted over 140 new members to the Feeder Finance Co-ops. This is nearly double the new members that joined the Co-ops in 2005. With higher loan limits and more borrowing activity, most Co-ops have experienced more positive financial returns.

Overall utilization of funds by the program has grown from $38.5 million a year ago to $55.4 million. This level of dollar utilization slightly exceeds the amount used in the Program in 2002, which was the year with the most activity since the Co-ops were formed, in 1990. However, it does provide the challenge of ensuring that Co-ops that are not utilizing their lending level will share with those who are pushing their limits.

Looking into the future of the Feeder Finance Program:

• We want to maintain integrity of the program with minimal usage of assurance accounts

• We want to maximize usage of the provincial limit of $80 million across the province

• We want to maintain 19 viable Co-ops

• We want to be able to implement the interest free component of the Federal Advance Payment Program for eligible Feeder Finance members