Breeder Loan Co-ops were established in 2002 with assistance
from OCA to assist farmers to either establish or expand
their beef cowherd.
As of today, 9 co-ops continue to operate throughout
certain areas of Ontario. One Co-op in Central Ontario is the
process of winding down due to lack of activity. All Co-ops continue
to have lending arrangements with Farm Credit Canada (FCC) and
continue to offer loans of up to $50,000 for the purchase of cows
and bred heifers. A 15% assurance account deposit is required and
repayment is generally five years.
BSE and the state of the industry in the last twelve
months has allowed most Co-ops to hold their own. It takes new or
repeat borrowers to generate a cash flow. In April of 2008, Farm
Credit Canada agreed to continue to lend to the Co-ops as in the
past and their notion of lending to only 3 Co-ops with pooled
assurance accounts became history. Statistics indicate that
collectively the program is maintaining activity; however 5 Co-ops
have provided funding for less than 100 head of bred females in the
first six months of 2008.