The Feeder Associations of Alberta Limited.
The Feeder Associations Guarantee Act and regulation provides farmers with a method of acquiring livestock for growing and finishing. The livestock are owned by the feeder association, but the care, feeding and marketing are the responsibility of the individual member.
Local Feeder Associations Administer the Program
Local feeder associations are formed under the
Co-operatives Act and Regulations. There are currently 54 local associations.
In each feeder association a Board of Directors approves and monitors contracts with individual members. Each board hires a Supervisor and a Secretary/Treasurer to administer contracts and maintain financial records.
Before receiving cattle, individual feeder association members must submit a security deposit of 5% of the value of the contract to their local feeder association. Assessment of financial strength, credit worthiness and cattle feeding experience of the individual continue to be key elements of risk management performed by the local associations. No additional security is required.
The program provides farmers with a competitive method of acquiring livestock (interest rates less than prime) for growing and finishing purposes. New feeder association members can have up to $100,000 worth of livestock purchased by the feeder association on their behalf. After six months, feeder association members are eligible to obtain up to $500,000 worth of livestock (with board approval). Members may also access one of the Livestock Indemnity Trust plans that reduce the extreme financial hardship that might result from animal death loss.