Purpose
Stocker Loans are available for:
- purchase of steer and heifer calves, feeder cows, and lambs;
- cash advance to retain producer’s own feeder cattle or lambs; and
- purchase of unbred heifers to be bred and sold within a 12-month period.
Loan Maximum
Stocker Loans allow eligible farmers to borrow up to $1,400,000 million, with terms of up to 18 months for cattle and five months for sheep.
Interest Rate
Interest is charged at MASC’s one-year term rate. Stocker Loans with terms over 12 months use the two-year rate.
See MASC lending rates for more details.
Repayment
For cattle, repayment is to be made upon sale of cattle, or within 18 months for stocker steers / heifers (12 months for breeding heifers), at which time the loan is repayable in full.
For lambs and feeder cows, repayment is to be made upon sale of livestock, or within five months, whichever comes first.
Security
Stocker loans are secured by the livestock financed by the loan, which may cover up to 100 per cent of the livestock purchase price.
Qualifications
Qualified applicants for a Stocker Loan can be individuals, joint farm units, partnerships, corporations, or cooperatives.
- Applicants must be Manitoba residents who are at least 18 years of age and Canadian citizens or have lawful permanent residence status.
- Applicants must personally operate the farm to which the loan applies.
- The farm must be considered potentially viable and meet security requirements.
Terms and Conditions
- Loans are available up to $1,400,000.
- Financed cattle must be sold within 18 months for stocker steers/heifers, or within 12 months for breeding heifers, at which time the loan is repayable in full.
- Loans with a term longer than 12 months will use MASC’s two-year interest rate. Feeder cows and lambs will be financed at MASC’s one-year rate.
- Loan repayment for lambs and feeder cows is to be made upon sale of livestock, or within five months, whichever comes first.
- There are no restrictions on where the feeders are bought and sold.
- Livestock may be fed on-farm or placed in a feedlot (provided it is approved by MASC).
- Cattle must have a minimum weight of 400 lbs (181 kg).
- Weaned lambs must have a minimum weight of 45 lbs (22.5 kg).
Feeder Plus Loans
Feeder Plus Loans are a new revolving financing option for large-scale cattle producers. Obtain up to 90 per cent financing on up to $6250000 for purchasing feeder steers and heifers, or for advances on owned feeder cattle, and purchasing heifers for the intent to breed.
Livestock Price Insurance Bundle
If you use a Stocker Loan to finance livestock and purchase a Livestock Price Insurance (LPI) policy for feeder cattle, you are eligible for a one-time interest rebate of 90 per cent of the disbursed Stoker Loan amount.
Note: the purchased LPI policy must be of equal or greater insurable value than the Stocker Loan amount.
Example:
A producer finances 100 calves each worth $1,500 for a total Stocker Loan of $150,000. The producer also purchases an LPI-Feeder policy for 850 cwt at a coverage level of $220 per cwt, for a total insurable value of $187,000.
Since the value of the LPI policy exceeds the Stocker Loan amount, the producer will receive a rebate of $375 ($150,000 x 0.25 per cent).
