Loan limit increases will help Manitoba producers and provide more options to invest in operations
The Manitoba Agricultural Services Corporation (MASC) is increasing limits on several loan products to help producers across the province manage the demands of farming in today’s economy.
“Our government recognizes the economic pressures on producers as they strive to succeed in the competitive world of agriculture, despite the challenges posed by last year’s drought and the impact of the ongoing pandemic.” said Agriculture Minister Derek Johnson. “In response, MASC has increased loan limits to provide our farmers, especially the younger generation, with financial options that give them greater flexibility in managing, establishing or expanding their operations.”
MASC’s loan programs provide Manitoba agricultural producers with access to credit with reasonable interest rates and flexible repayment terms. The company provides direct loans and warehouse loans, and guarantees loans from private sector financial institutions to help establish and grow farm operations in rural Manitoba, supporting the transition to the next generation of agriculture. farmers. The limits were last updated in 2018.
Effective April 1, 2022, the direct loan limit will increase from $3.5 million to $4.25 million, reflecting increased land values and operating costs. Loans can be used to purchase farm land and buildings, farm equipment, breeding stock, and quota for supply-managed products. They can also be used for the construction or renovation of agricultural buildings, greenhouses and nurseries, the consolidation and refinancing of debts and the financing of operating expenses.
Limits on feeder loans, which provide producers with short-term financing for the purchase of feeder cattle and lambs or a cash advance on their retained feeder animals, are also being increased. Additionally, effective April 1, 2022, storekeeper loan limits will increase from $500,000 to $750,000. With Manitoba’s cattle herd having declined significantly due to recent drought years, increasing the loan limit from $500,000 to $750,000 is a great tool to help producers rebuild their herds, the minister noted.
The limits of the Manitoba Livestock Associations loan guarantee program, which encourages the feeding of livestock in the province, thereby providing several economic benefits, will increase from $500,000 to $750,000 and association limits will increase from $8 million to $12 million, both effective April 1, 2022.
“By providing loan programs, our government is further supporting and encouraging the sustainability, development and diversification of Manitoba’s agriculture and rural economy,” Johnson said. “These changes will help ensure that MASC’s loan products remain relevant to producers and that capital is available. It is important to support the growth of the agriculture industry as it is a key driver of our provincial economy.
For more information, visit masc.mb.ca.