CARLETON PLACE—The Ontario government is strengthening the province’s beef sector by increasing financial support available through the Feeder Cattle Loan Guarantee (FCLGP) Program to $500 million. The province is also investing in an industry-led market development program to increase domestic and international sales.
“Our province’s Grow Ontario Strategy commits to strengthening the province’s agriculture and food supply chain and increasing agri-food trade by eight per cent per year,” said Rob Flack, minister of agriculture, food and agribusiness. “The actions we’re announcing (July 29) support both of these goals and will help Ontario’s beef sector capture new opportunities now and in the future.”
“We’re appreciative of the government of Ontario’s commitment to these valuable programs, both of which play a significant role in our sector’s ability to maintain and grow a consistent supply of Ontario beef for our communities here at home and around the world,” said Craig McLaughlin, president of Beef Farmers of Ontario (BFO). “Increasing the government guarantee and the individual loan limits under the Ontario Feeder Cattle Loan Guarantee program (OFCLGP) will allow the program to better respond to the escalation in cattle prices and growing interest from young and beginning farmers, as well as existing farmers who value the program for its reliable access to affordable credit.”
The expansion of the FCLG program will see available funding for beef farmers increase by $240 million to $500 million. The program provides low-interest financing to support the short-term needs and long-term growth of feeder cattle co-operatives and their members. Financing is provided by private sector lenders and the Ontario government guarantees the value of 25 percent of the loans.
The government is also doubling the maximum loan a farmer can access and making other changes to better support the industry. These include administrative changes that will allow the Ministry of Agriculture, Food and Agribusiness to move funding allocations more easily between feeder co-ops to better meet producer demand.
At the same time, the government is investing $2 million over four years in the Ontario Beef Market Development Program. Funding will be used to support activities that enhance the competitiveness of Ontario products at home and beyond our borders, support the expansion of existing Ontario beef brands, and aid in the development of new Ontario beef brands. Eligible activities include participating in trade shows and trade missions and welcoming potential out-of-market buyers to tour Ontario beef farms and processing facilities.
“Over the last five years, Ontario’s beef farmers have been heavily investing in an industry-led initiative to grow domestic and export markets for Ontario-branded beef, maximize the value of Ontario beef products, and share the important sustainability story of Ontario beef with the public and our customers,” said John Baker, director Ontario Beef Market Development Program. “We have an outstanding product and are well positioned to increase market share of Ontario beef in many key global markets, and this investment will help augment our market development efforts both domestically and internationally.”
