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HOG LOANS DO NOT WORK
I am wondering if I am the only one that has realized that the government backed loans are not going to work for the vast majority of hog producers. What needs to be done to get our governments to understand the real issues that are affecting this industry at this time. What do we need to do to unite our industry and get everyone fighting for our cause before there is nothing left to fight for. Comments please.
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Replies to This Discussion
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Permalink Reply by kevin brady on
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Nothing works without higher prices More loans only dig the industry in deeper unless we have a statagy toget more $ per head. Can we build a Ontario industry without a made in Onraio premium or goverment cost of production insurance.
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How about we study the new proposed Quebec pork board structure.
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Permalink Reply by Wayne Black on
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Right from the start of this "loan program" we have stated that this is the wrong direction. If you can afford the loan go to the bank. If you can not afford the loan - you are the person that needs help financially. Already stretched to the max on operating loans and mortgages - then being told here is another loan... imagine my first response. Something about nutrient management.
From October 14th Huron Expositor "But Black says many pork producers are already over-extended with loans and mortgages and the idea of paying back another loan may turn them off the program. "
In the past month I have seen the hog industry come together with other sectors like never in recent history. Hopefully in the next couple weeks we will see some light at the end of the tunnel.
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Permalink Reply by pigsrgr8 on
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Maybe we need a rock star to sing a song like Neil Young's Farmer's Song.
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Permalink Reply by Joe Dales on
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I had this news sent to me on the program.
Joe
Canadian Hog Industry Loan Loss Reserve Program Applications Picking Up
Farmscape for November 26, 2009 (Episode 3361)
Farm Credit Canada reports the pace of applications for loans under the new Canadian Hog Industry Loan Loss Reserve Program is picking up.
The Loan Loss Reserve Program is part of a three tier Canadian pork industry restructuring plan.
It provides participating financial institutions guarantees on loans to allow producers to restructure short term debt.
Farm Credit Canada senior vice president portfolio and credit risk Remi Lemoine says it's still too early to estimate how many producers will qualify.
Clip-Farm Credit Canada-Remi Lemoine:
The primary thing we're looking at is the longer term viability, is there ability to pay back the debt.
We're not as interested in things like security given the backing provided by the federal government but one of the criteria is that there has to be some hope of success even with the program and so basically it's a longer term analysis of the cash flow.
We're trying to take a longer term look at the prices and the costs.
We can't base it on what's happened over the past couple of years so, based on that criteria, we've been starting to move the applications through.
For our existing customers it doesn't take that much time to get it out the door because most of their legal and administration stuff is set up.
We're getting quite a few new customers from other financial institutions applying and in those cases we're starting from scratch and there's legal work to do and that sort of thing but it'll go as quick as we can get it out.
Lemoine says interest rates are based on past performance and repayment history and have ranged from three and a quarter to as high as seven percent averaging from four to five percent.
He points out, even prior to the introduction of the new program, FCC had been working with clients in the pork industry and over the past two years had adjusted payment schedules on about 20 percent of existing loans.
For Farmscape.Ca, I'm Bruce Cochrane.
*Farmscape is a presentation of Sask Pork and Manitoba Pork Council
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Permalink Reply by OntAG Admin on
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Loan Loss Reserve Program Loan Uptake Slow
Farmscape for December 17, 2009 (Episode 3377)
The Canadian Pork Council reports uptake of loans under the Canadian Hog Industry Loan Loss Reserve Program has been slow.
The Loan Loss Reserve Program, offered through Canada's financial institutions, is part of a federal hog industry restructuring plan and allows producers to consolidate and extend repayment of existing debt.
The Canadian Pork Council is surveying producers about their experiences with the program.
CPC public relations manager Gary Stordy reports there is still a lot of unanswered questions.
Clip-Gary Stordy-Canadian Pork Council:
At the end of the day it appears that this program, even though it was discussed and announced some time ago, the actual implementation of the program may not be as fast as we expect.
Frankly we are hearing, we can't substantiate this, is that producers are not asking for the program and that's concerning.
We'd like to get a handle on that.
We'd like to know, if that's the case, why aren't they asking for the program?
We're getting a number of feedback from the banks that this is a good program, it's going to work, just give it some time.
The difficulty we have is that frankly time might not be an option for some producers who have to make decisions and at the same token if producers are not asking for the program or talking to their financial institutions about the program that has to be dealt with also.
What we are getting back as some information is that there's some concerns about eligibility, certainly equity questions, whether producers have enough equity may be a barrier.
We would encourage producers to, frankly, negotiate with the financial institutions regarding the interest rates and work with the program.
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First of all I want to say we have a good home based industry with high standards. However when situations like the H1N1 come around the corner at a time when the markets was to improve everything falls in pieces.We have the high $$ we have interprovincial trade issues,on top of that a declining meat consumption.Pressure on the feed prices related to the green energy policies. This all together is the root of our problem and sure is creating a mess and I would say a crisis. A situation that has all the reason to call for help. As farmers feeding the world, the world has a duty to look after their farmers. It is for these reason that I find the position our provincial and federal elected officials have taken unacceptable. It seems to be that the auto motive industry has more cloud than the people feeding the people and that is a problem. to overcome this we have to unite we need to stand together we need a united strong structured pork board.
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This was posted by another person in the blog area....it belongs here in the chat discussions. Thanks, Joe
I understand that the CPC is frustrated about the fact that this program is not flying,
My understanding is from what I hear is that the industry is cash strapped and and does not need more loans after all these years of losses.
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I agree the industry is Cash strapped and new loans are not The Answer.
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