Government of Saskatchewan
Quick Search:
   Thursday, September 03, 2015

March 2015

The Livestock Loan Guarantee (LLG) program has facilitated the growth of Saskatchewan's livestock industry, including cattle, bison and sheep. The program provides producers with alternative financing options to purchase livestock. Some producers also use the program as a management tool to generate cash flow through retained ownership of livestock.

Producer Benefits

Key benefits to the producer include:

  • Provides a reliable source of credit at competitive interest rates. Livestock and assurance fund deposit are pledged as loan security. Minimal assurance fund deposit allows members to purchase during times of limited cash flow.
  • Improves cash flow management through retained ownership options.
  • Associations are producer-controlled.
  • Producers may be eligible for an interest rebate on the first $100,000 of eligible feeder advances through the Advance Payments Program offered by Agriculture and Agri-Food Canada (cattle and bison only).

Overview

Producers apply for membership in a feeder and/or breeder association or can inquire about starting a new association. Once approved, the association may begin to borrow funds from a lender to purchase feeder or breeder livestock on behalf of the member, subject to the following terms and conditions:

  • Members must maintain an assurance fund deposit equal to at least five per cent (feeder) or 10 per cent (breeder) of the outstanding loans taken by the association on the member's behalf. This deposit is refundable, provided it has not been used to offset a loan default.
  • Members may sell their own feeder heifers and steers, or bred heifers to the association for fair market value to generate operating capital while maintaining the benefits of ownership (some restrictions apply).
  • All livestock purchased by the association on behalf of a member, and any offspring, are owned by the association and must be branded/tagged with the association's registered brand/tag.
  • Members are responsible for repaying in full any loan(s) taken out by the association on their behalf. Producers continue to be responsible for repayment of loans should a guarantee payment be made to the lender.
  • All livestock are sold in the name of the association on behalf of the member. The association makes the required payment on the member's account and returns any excess to the member.

 

Government Guarantee

The Government of Saskatchewan guarantees the lender repayment of 25 per cent of the amount outstanding on loans at the time of first default. In the case of a default after all inventory has been disposed of, the association repays loans from the assurance fund before any payment is made under the government guarantee.

Eligibility

Residents of Saskatchewan who are at least 18 years of age are eligible for the program, subject to association, lender and government approval. Associations and/or lenders may establish additional criteria. Some restrictions apply to membership in more than one association.

Loan Limits and Conditions

Cattle Feeder Option:

  • Eligible livestock include feeder heifers, steers and feeder cows.
  • Loans for feeder heifers and steers must be repaid within 12 months from the date of purchase or when the cattle are sold, whichever comes first.
  • Loans for feeder cows must be repaid within 180 days from the date of purchase or when the cows are sold, whichever comes first.

Cattle Breeder Option:

  • Eligible cattle include pregnant females under 60 months of age and non-pregnant females under 60 months of age with an unweaned calf at foot.
  • Breeder loans must be repaid within five years from date of purchase, with 20 per cent annual payments due on the anniversary date or when calves are sold, whichever comes first.

Bison Feeder Option:  

  • Eligible livestock include bison feeder bulls and feeder heifers under two years of age.
  • Loans must be repaid within 18 months from the date of purchase, or when the bison are sold, whichever comes first.

Bison Breeder Option:  

  • Eligible livestock include pregnant females under eight years of age, pregnant or non-pregnant females under eight years of age with a calf at foot or a member's own pregnant heifers.
  • Loans must be repaid within six years from the date of purchase.

Feeder Limits for Cattle and Bison:

The maximum loan limit* per member is: The maximum loan limit* per corporation is:
  • 1styear - $100,000
  • 2ndyear - $300,000
  • 3rdyear - $400,000
  • 4th year - $500,000
  • 1st year - $300,000
  • 2nd year - $600,000
  • 3rd year - $1,200,000
  • 4th year - $1,500,000

Breeder Limits for Cattle and Bison:

The maximum loan limit* per member is: The maximum loan limit* per corporation is:
  • 1styear - $100,000
  • 2ndyear - $200,000
  • 3rdyear - $300,000
  • 4th year - $500,000
  • 1st year - $300,000
  • 2nd year - $600,000
  • 3rd year - $900,000
  • 4th year - $1,500,000


Sheep Feeder and Breeder Option:

  • Eligible livestock include feeder wethers and feeder ewe lambs.
  • Eligible breeder livestock include pregnant females under four years of age and non-pregnant females under four years of age with a lamb(s) at foot.
  • Feeder loans must be repaid within six months from the date of purchase, or when the feeders are sold, whichever comes first.
  • Breeder loans must be repaid within four years from the date of purchase, with 25 per cent annual payments due on the anniversary date, or when the lambs are sold, whichever comes first.

 The maximum loan limit* per member is:  The maximum loan limit* per corporation is:
  • 1styear - $35,000
  • 2ndyear - $70,000
  • 3rdyear - $100,000 
  • 1st year - $35,000
  • 2nd year - $70,000
  • 3rd year - $100,000

*Member loan limits are subject to association, lender and government approval. A member may enroll in both options and borrow up to the maximum allowed in either option. The maximum a member may borrow under both options is $500,000 for individual and $1,500,000 for corporations.

For more information, contact:

Financial Programs Branch
Saskatchewan Agriculture 
Walter Scott Building
3085 Albert Street
Regina, Saskatchewan S4S 0B1
Phone: (306) 787-5275
Fax: (306) 798-3042

Related Documents

PDF (900KB)

llg-manual-2015.pdf  ( 4.4 MB )
Related Links

Saskatchewan Agriculture and Agriculture and Agri-Food Canada have signed an agreement allowing the Livestock Loan Guarantee (LLG) program to administer the interest-only portion of the Advance Payments Program (APP) in Saskatchewan.

All forms - PDF files



Home/About Agriculture/Programs and Services/Livestock Loan Guarantee Program
© 2015 Government of Saskatchewan. All rights reserved.