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Programs and Services Advanced Payments Program - Livestock Loan Guarantee ProducersAdvanced Payments Program - Livestock Loan Guarantee Producers Saskatchewan Agriculture and Agriculture and Agri-Food Canada have signed an agreement allowing the Livestock Loan Guarantee (LLG) program to administer the interest-rebate portion of the Federal Advance Payments Program (APP) in Saskatchewan. This program will allow producers in a feeder cattle or bison association with an eligible feeder advance to apply for a portion of the interest paid on this advance to be rebated through the APP. Details of the program are as follows:
Cow-calf producers can access the full APP program through the Canadian Livestock Advance Association (call 1-866-745-2256). LLG breeder members have the option to take a cash advance on association calves, but will be required to make their annual payments prior to obtaining this advance and obtain a release from the association. Saskatchewan cattle, bison and sheep feeders may apply for a cash advance through the Manitoba Livestock Cash Advance Inc. (MLCA). Additional information can be obtained by calling 1-866-869-4008 or accessing the website www.manitobalivestock.com. Association cattle, bison and sheep are not eligible unless loan is paid out. If you have any questions, call your association or Saskatchewan Agriculture provincial supervisor.
Interest Rebate Program on Feeder Association Loans The federal Advance Payments Program (APP) has an option that will rebate the eligible portion of interest on feeder association loans to eligible producers. The loans are treated no differently than any other feeder loan however, the producer needs to fill out an interest rebate APP application. The "program year" is April 1 through March 31, with the interest rebate expiring on September 30 of each year. Frequently Asked Questions Do cattle on an existing feeder association advance qualify? Yes. An APP interest rebate application, provided by LLG, must be filled out to qualify. Cattle cannot be claimed for more than once. Therefore, if you applied for the animals under the APP in previous year, you are not eligible to reclaim for those animals in the new application year. I already have a cash advance. Do I also qualify for the Interest Rebate APP? Producers qualify for a maximum of $100,000 interest-free benefit on all commodities (cattle, wheat, canola, honey, etc.) per program year. If you have not used the whole $100,000, you are eligible. Can two people apply if they are related? Related producers can apply but will have $100,000 split between them. Producers must have separate tax filings and additional proof to be considered separate. Husbands and wives are always related. Do I need to be enrolled in the CAIS program for a rebate? Is there an administration fee for this program? A suggested administration fee is set at $75 per application. This fee will go to the association to help cover the cost of the association secretary processing the application and the rebate cheques. The fee will be deducted at time of rebate. Who is administering the interest rebate portion of the APP in Saskatchewan? The Livestock Loan Guarantee Program has signed an agreement with the Federal Government to administer the interest rebate portion of the Federal APP in Saskatchewan. When my loan is paid off, when can I expect my interest rebate? Why should I take the feeder association advance and apply for an interest rebate instead of the simple cash advance?
What difference does the finished or background choice make for the interest rebate? The rebate is based on the amount of the advance that is eligible. Producers who expect to sell their livestock at the heavier finished weight will have a larger portion (or all) of their advance eligible for an interest rebate. Producers should choose either backgrounding or finishing, whichever will be the closest to their expected marketing plan. (Eg. Background calculation uses 850 lb. and finished calculation uses 1250 lb.). What date do I sign my application? Sign and date the form for April 1st or use the schedule date if it is after April 1st. What happens if my feeder advance is still outstanding as of March 31st ? The interest rebate timeline extends to September 30 of each year. If the advance is paid off prior to September 30, the producer would be eligible for the maximum rebate. If the advance is still outstanding as of September 30, then the interest rebate calculation will stop. The rebate will be calculated as of this date and paid after the producer pays off the advance. As long as you are not in default, you are eligible to receive a new $100,000 interest free on April 1st of each year. What is the advance rate for 2008-2009? It is: $46/cwt. cattle Example equations:
For more information, contact: Financial Programs Branch
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