Bred Heifers Loan Information

    The Bred Heifer Associations Loan Guarantee Program was introduced to help BC beef producers add more value to their livestock operations.  The program increases the availability of livestock breeding credit through encouraging the formation of farmer owned cooperatives, called Bred Heifer Associations.  These Associations borrow money from banks or credit unions and purchase bred heifers to increase the base cow herd on member farms.  Increasing the foundation herd, makes available more feeder calves in the province and adds value to member farms and ranches.  The province provides a loan guarantee to the Association's lender.

Program Outline

  • One time membership fee of $100.00 (Non-refundable).
  • 10% security deposit required.
  • Financing for a 5 year term.
  • Annual payments by December 1st yearly. (Principle, Interest and handling).
  • Principle payments set at Year 1 & 2 at 14% of total principle, years 3,4,5, are 24% of principle or 5 equal payments.
  • Handling fee 11/2% outstanding principle, (yearly fee).
  • Mortality Insurance is with Hartford Insurance, 1.25% of the value of the loan contract with a 2% deductible of the value of the loan cumulative. (MANDATORY).   Animals are covered for actual commercial, stocker or feeder value at time of loss.
  • Interest rates fixed or floating.
  • Branding: Bred heifers and their offspring are branded with the feeder brand and a member id number.
  • Eligible cattle - bred heifers up to 3rd calvers.
Who is eligible?
All persons are eligible who:
  • are residents of British Columbia; and
  • are at least 19 years of age; and
  • own or lease a farm in British Columbia
 How much is the guarantee?

The Province of British Columbia will guarantee to the lender repayment of up to 15 percent of the loans outstanding.
Can Producers place their own livestock in the program?

Heifers being brought from one self, neighbor, country buying must be evaluated for price by a licensed BC Livestock Dealer, with a written opinion of value.

Heifers purchased by Auction must have prior approval for current price, and fall under the weight and quality restriction.

 What security do members provide?

Members are required to place in the associations assurance fund, 10 percent of the value of the cattle on loan.

In case of default, the association repays loans from the asurance fund before any payment is made under the guarantee.

 

Who owns the livestock?

The association owns the livestock.  They are identified with the registered brand of the Association, and are fed by the member on contract with the association.

 Can a producer belong to the Feeder and Bred Heifer Program?

The Feeder Program and Bred Heifer Program are totally separate each with a Government Loan Guarantee, members may have loans in both programs.


What are the guaranteed loan limits?

For each member, the guaranteed loan limit is determined by the association to a maximum of:

  • $25,000 for members feeding for the first year in an association.
  • $50,000 for members feeding for more than one year, but less than two years in an association.
  • $75,000 for members feeding for more than two years but less than three years in an association.
  • $100,000 for members feeding three years and over.
  • $150,000 limit per family unit.
What are the advantages to the Livestock Producer?
  • A reliable source of credit is available on short notice from the association.
  • The Interest rate is competitive or better than on an individual basis.
  • The minimum 10 percent deposit allows Livestock Producers to continue during periods of limited cash flow.
  • The association is controlled by its members.
  • Livestock Mortality Insurance Fund covers bred heifers.

For more information/E-mail, please check out:

BRED HEIFER ASSOCIATIONS

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