Livestock Financing
Highlights
This program is designed specifically for cattle producers like you. It offers flexible and convenient financing tailored to your needs, whether you are focused on feeder cattle or breeding livestock. By working with our participating livestock partners, you can enjoy the convenience of one-stop shopping for your livestock purchases and financing.
Key Benefits:
- Customized pre-approved lending limits to fit your business needs.
- Modest down payment options or security deposit accounts.
- No prepayment penalties, allowing you to pay off your loan early without extra costs.
- Competitive interest rates to save you money over time.
Why Apply?
- Expert support from professionals who understand the cattle industry.
- Unique products built specifically for cattle producers.
- Faster equity realization through proportionate payments.
Financing Options:
- Feeder Cattle: Revolving loan with variable interest, renewed annually.
- Breeding Livestock: Non-revolving loan with variable and fixed interest options, terms of 3 or 5 years.
This program makes it easier to grow your herd and manage your finances effectively. It's designed to be easy to qualify for, ensuring you get the support you need to thrive.
Financing Details
Type of Financing:
- Loan: This program offers loans tailored to the needs of feeder cattle and breeding livestock producers.
Repayment Terms and Interest Rates:
Feeder Cattle Loans:
- Term: One year, renewed annually.
- Interest Type: Variable options available.
- Due Date: Upon sale of animals or within 365 days.
- Deposit/Down Payment: Minimum 10%.
Breeding Livestock Loans:
- Term: 3 years for older cows or 5 years for young cows/heifers.
- Interest Type: Variable and fixed options available.
- Due Date: Annual payments in June or December.
- Deposit/Down Payment: Minimum 15% for 3-year term, minimum 20% for 5-year term.
Eligible Expenses:
- Purchase of steers and heifers for feeder cattle loans.
- Purchase of heifers, cows, and bulls for breeding livestock loans.
Restrictions on Use of Funds:
- Funds cannot be used for purposes other than purchasing livestock.
Fees:
- No prepayment penalties.
- Competitive rates offered.
Qualifications
- Must be a cattle producer.
- Must be involved in feeder or breeding livestock production.
- Must work with a participating livestock partner across Canada.
- Must be purchasing steers and heifers (for feeder program) or heifers, cows, and bulls (for breeder program).
Must meet the minimum down payment requirements:
- 10% for feeder program.
- 15% for 3-year term breeder program.
- 20% for 5-year term breeder program.
Disqualifications:
- Businesses not involved in cattle production.
- Businesses not working with a participating livestock partner.
- Businesses unable to meet the minimum down payment requirements.
Description
This program offers flexible and convenient financing for feeder cattle and breeding livestock producers. You can work with livestock partners across Canada to get customized lending limits and competitive rates.
You can receive financing with modest down payments. Depending on your livestock alliance partner, you might also have the option of pooled or non-pooled security deposit accounts. There are no prepayment penalties, giving you the freedom to manage your finances as needed.
For feeder cattle, the term is one year, renewable annually. For breeding livestock, the term can be three years for older cows or five years for young cows and heifers. You can choose between variable and fixed interest rates, with payments due either upon sale of the animals or annually in June or December. This program is designed to help you purchase and finance livestock at the same place, making it easier to grow your herd and realize your equity faster.
Program Steps
Find a Livestock Partner: Locate a participating livestock partner near you. This partner will assist you in the application process and provide tailored financing options.
Prepare Documentation: Gather the necessary documents to support your application. You will need:
- Financial statements
- Business plan
- Details of livestock purchases
- Proof of down payment or security deposit
Discuss Financing Options: Meet with your livestock partner to discuss the financing options available. Understand the terms, interest rates, and repayment schedules for both feeder and breeder programs.
Complete the Application Form: Fill out the application form provided by your livestock partner. Ensure all required fields are completed accurately.
Submit Documentation: Submit your prepared documentation along with the completed application form to your livestock partner.
Review and Approval: Your livestock partner will review your application and documentation. They may request additional information or clarification during this process.
Finalize Loan Terms: Upon approval, discuss and finalize the loan terms, including the interest rate, repayment schedule, and any associated fees.
Receive Funds: Once the loan terms are agreed upon, the funds will be disbursed. You can then proceed with purchasing your livestock.
Manage Payments: Make payments according to the agreed schedule. For feeder programs, payments are due upon the sale of animals or within 365 days. For breeder programs, annual payments are due in June or December.