Cattle Loan Program

Overview of the Cattle Loan Program program:

The Cattle Loan Program offers to financially support Island farmers for the breeding and raising of animals destined for the Atlantic Beef Products plant to expand economic growth in the beef industry.

Benefits of the Cattle Loan Program program:

• Expand your business by applying to this program, financing is available under two options:
  • Individual applicant maximum of $100,000:
• Loan available for feeder animals with financing at the prime rate plus one percent, repayable over an 18-month term.
• Loan available to purchase breeding stock with financing at the prime rate plus one percent, repayable over a five-year term.
• Choose the option that fits you best.

Eligibility criteria of the Cattle Loan Program program:

• To apply for this program, you must:
  • Be in good standing with the PEI Cattle Producers and the Department of Agriculture and Fisheries
  • Ensure animal traceability
  • Use best management practices related to animal welfare
  • Be registered in the AgriStability Program
  • Have a satisfactory Personal Property Security Act check
  • Be a resident of Prince Edward Island and be 18 years of age or older
  • Use the loan to purchase cattle, and not ongoing business costs,
  • Market animals to Atlantic Beef Products Inc. (If cattle are shipped to another plant or not sold locally, Finance PEI reserves the right to demand loan)
  • Sell offspring not being finished from breeding stock financed by this program to local farmers (evidence is required),
  • State the purchase cost on invoices and only use third-party transactions
  • Proceeds from the sale of animals must be in the name of the Applicant and Finance PEI jointly, and
  • Use all funds available through the Advance Payment Program before accessing funding through the Cattle Loan Program.
  • Additional requirements:*
  • Obtain any necessary licenses, permits, and insurance required for cattle purchase, under Provincial Regulations,
  • General Security Agreement to Finance PEI with a first charge over inventory
  • Should the Advance Payment Program hold a first charge over inventory, Finance PEI will consider a second charge and additional security may be required, such as land, etc.