The provincial government and the Prince Edward Island Hog Commodity Marketing Board have reached agreement on the details of a new hog bridge loan program for producers. The program, announced last December, is financed by the Prince Edward Island Lending Agency at its cost of borrowing, and will be administered by the Board. Loans will be made to producers at a level of $10 per finished hog and $3.50 per weaner, based on previous production records. To be eligible for a loan, producers must be registered in the Agriculture Income Disaster Assistance (AIDA) program. Repayments will be made from assignment of funds provided under AIDA or through a checkoff when hog prices recover to $1.60 per hundred kilogram.
"Although there has been some recovery in market conditions, many hog producers have been seriously affected by the prolonged drop in prices," said Agriculture and Forestry Minister Eric Hammill. "This program will help to protect the major investments made by producers in improving the level and quality of production."
Mr. Hammill said the amount of loans to be made available could range from $1.0 to $1.5 million.
"I am very pleased this new loan program is finally in place," said Rodney Dingwell, Chairman of the Hog Commodity Marketing Board. "It will be of some help to those producers who continue to face serious financial problems because of reasons beyond their control."
Eligible producers can now make application to the Hog Commodity Marketing Board.
The deadline for applications is March 31, 2000.