Manitoba Livestock Cash Advance - 2023 Applications Now Available

Manitoba Livestock Cash Advance (MLCA) was established in 2007 to administer the ADVANCE PAYMENTS PROGRAM (APP) for Cattle producers in Manitoba and Saskatchewan. Sheep/Lamb producers in Manitoba, Saskatchewan, and Alberta. Goat producers in Manitoba, Saskatchewan, Alberta and British Columbia and Bison producers nationally. Beginning in 2015, MLCA began offering cash advances on a select number of crops in Manitoba and Saskatchewan.

The Advance Payments Program (APP) is a Federal loan guarantee program that helps producers meet their financial obligations and benefit from the best market conditions by improving their cash flow throughout the production period.

To be eligible producers must be a Canadian citizen or permanent resident. A corporation, cooperative, or partnership of which the majority interest is held by Canadian citizens or permanent residents.

Producers must also meet the security requirements. Cattle producers are now able to use Livestock Price Insurance (LPI) as the Business Risk Management program for the Cattle cash advance, see below for more information.

_________________________________________________________________________________________________________________

_________________________________________________________________________________________________________________

How Does the Program Work?

• The Production Periods are 24 months in length for Cattle and Bison Producers and 18 months for Crops and all other livestock commodities, beginning April 1st.

• Continuous Flow (Livestock Feedlots) cash advances are a 12-month term, not exceeding the end of a production period.

• Producers repay at the same advance rate per head as chosen at the time of their advance, which is approximately 50% of the market value of the commodity. This allows for any additional income to be retained by the producer.

• The Cash Advance must be repaid within the Production Period and repayments of the agricultural product are to be made as the commodities are sold and proof of sale provided to MLCA.

• Producers must be actively participating in an eligible Business Risk Management Program (BRM). Cattle Producers can secure the loan using Agristability or Livestock Price Insurance (excluding breeding inventory). All other livestock commodities must use Agristability. Crop Producers can use either Crop Insurance or Agristability. In the instance that a producer does not have BRM insurance MLCA will consider a Financial Institution Guarantee for the full amount of the Loan advance.

• Please note that advances are limited to a maximum of $1,000,000.00, with the Federal government paying the interest on the first $350,000 (only for the remainder of 2023) of the advance, on all commodities.

• All repayments made are put towards the interest free portion of all advances first.

• A Producer cannot designate only a portion of the production of a product as being under the advance. This means that a repayment must be made starting with the FIRST SALE in a Production Period of an agricultural product on which the advance was taken. A Producer cannot sell a portion of the agricultural product(s) without making repayments and then wait to make repayments from the proceeds of the sale of later portions of the agricultural product(s)

Learn more about the Manitoba Livestock Cash Advance Payments Program

For rates visit Manitoba Cash Advance Rates