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

Last year was an exciting one for the Feeder Program. Our co-ops were the first in Canada to offer the interest free component of the Advance Payment Program (APP) to livestock. We thank OCA, OMAFRA and Agriculture and Agri-Food Canada for working together to provide this component to our members. As of December 28, 2007, we had 377 members, with loans exceeding $22 million, benefiting from the program.

The introduction of APP caused a flourish of activity for most co-ops. We have experienced many milestones. As of November 30th, the most cattle ever purchased in a month was recorded at over 20,000 for an ending inventory of 72,860 head. Loans outstanding were $52 million and the biggest commitment of loans and purchased orders was recorded at $66.68 million.

There were also 180 new co-op members in 2007. Unfortunately this activity has limited the ability for some co-ops to take on new members as the allotment from OMAFRA of $80 million is totally divided among the 19 co-ops. We continue to monitor the demands and seek temporary solutions to the issue of limited funds. To obtain an increase in the OMAFRA allotment would require a change of the Order in Council.

In the year ahead, the Feeder Program will have to deal with the following challenges:

• Uncertain markets and the ripple effect it has on usage of assurance accounts

• Maximum usage of the provincial limit of $80 million across the province