| ||The current legislation provides farmers with an alternative method of financing feeder livestock. This will be replaced by a new Feeder Associations Guarantee Act and Regulation, which are targeted to come into force and effect in September 2010.
In order to qualify for a guaranteed loan, a feeder association must be incorporated in Alberta. In addition, a feeder association must maintain an account as security for a guaranteed loan with the lender and operate in a sound manner. The failure to do so or non-compliance with the applicable legislation may result in the Minister ordering the prohibition of further advances made under a guaranteed loan.
One significant change to the new Act is that a member of a feeder association will be able to retain an ownership interest in an animal in the value-added chain after the animal goes to market, processing, and retail.
Orders in Council
For more information about this legislation, contact Dace Cochlan