Ontario is going all-in on locally produced beef.
In a press release from the Ontario government dated Monday, July 29, 2024, the province’s minister of agriculture, food and agribusiness announced the province would be increasing financing to cattle farmers through the Feeder Cattle Loan Guarantee Program to $500-million, an increase of $240,000. In the same announcement, it was stated the government is also investing in an industry-led market development program which it says will aim to increase domestic an international sales.
According to the Ontario government, the Feeder Cattle Loan Guarantee Program was originally launched in 1990 in order to support beef cattle farmers in Ontario by facilitating access to competitive, short-term, low-interest borrowing through Feeder Cattle Co-operatives, which are located throughout the province and include Rainy River Feeder Finance Limited. The Ministry of Agriculture, Food and Agribusiness, as well as the Ministry of Rural Affairs (which were both formerly one ministry as the Ministry of Agriculture, Food and Rural Affairs, or OMAFRA) allocates portions of the available government loan guarantee to these individual co-operatives as needed. Under the previous investment amount of $260,000, Rainy River Feeder Finance Limited received a maximum of $1-million. No updated amount of what it may receive under the new investment total was given.
“Our province’s Grow Ontario Strategy commits to strengthening the province’s agriculture and food supply chain and increasing agri-food trade by eight per cent per year,” said Rob Flack, Minister of Agriculture, Food and Agribusiness.
“The actions we’re announcing today support both of these goals and will help Ontario’s beef sector capture new opportunities now and in the future.”
The government’s release notes that it is doubling the maximum loan farmers can access, along with making changes, including administrative changes to allow the ministry to move funding allocations more easily between feeder co-ops, to better support the industry in Ontario.
Rebecca Mahon, president for the Rainy River Federation of Agriculture, said the changes to the program will benefit the region, particularly when it comes to sustaining the long-term growth of the beef industry.
“With the increase input costs and cost of borrowing, local cattle producers will have better opportunities to grow their herds, especially in this current market of higher than average cattle prices,” Mahon said.
In the same release, the Ontario government also stated it would be investing more than $2-million over four years into the Ontario Beef Marketing Development Program, which it said will support activities that “Enhance the competitiveness of Ontario products at home and beyond our borders,” along with supporting the expansion of existing beef brands in the province, as well as helping in the development of new beef brands. Eligible activities under the program include participation in trade shows and trade missions, as well as welcoming potential out-of-market- buyers tour Ontario beef farms and processing facilities.
Taken altogether, Mahon said the funding increases will help beef farmers in the Rainy River District compete with larger agricultural centres in Canada, as well as in international markets.
“The growing investment in the beef market development board will keep our producers competitive nationally and internationally,” Mahon said.
“One thing to note is the cattle numbers for our district have remarkably been unchanged since the drought in 2021. However, with this increase in financing, this could provide more incentive to opt to the Feeder Cattle Loan program and increase their herd despite the current high cattle prices. As the program grows funding, it could also continue to increase the rates available to farmers.”
