Cash Advance Program
Manitoba Livestock Cash Advance
The cattle industry is a capital-intensive business. If you use the financing that is at your disposal, it gives you more flexibility to achieve what you need to do.
Beef producers looking for new ways to maximize profits have a valuable tool available to help enhance their beef operations. It is called the Manitoba Livestock Cash Advance (MLCA) and it can help improve your cash flow throughout the year.
Manitoba Livestock Cash Advance Inc. is the non-profit administrator of the federal Advance Payments Program (APP), which provides producers with a cash advance on the value of their products during a specified period. The program helps producers meet their financial obligations and benefit from the best market conditions. This is a service that is being coordinated through Manitoba Beef Producers for the benefit of beef producers.
One simple reason to use the MLCA: $100,000 in interest-free money available!
Producers can receive a cash advance on up to 50 per cent of the expected average market price of the agricultural product. For example, if 100 finished cattle (over 1,250 lbs) equal $826/head in Manitoba, this would give a producer an advance of $82,600. *Producers should note that rates are subject to change throughout the production period.*
The producer makes repayments on the cash advance to MLCA as the agricultural product is sold, and they must provide proof of sale. Producers repay at the advance rate that was chosen at the time of their advance. In order to be eligible for the MLCA, producers must be actively participating in AgriStability.
What You Need to Know
- Advances are limited to a maximum of $400,000 with the federal government paying the interest on the first $100,000 of the advance (includes all APP advances with other organizations).
- 24 Month Production Period for cattle and bison.
- Advance is based on the number of live heads.
- Breeding inventory is not eligible.
- The advance rates are 50% of the market value and are subject to change.
On average, it takes about ten business days to process an application if all of the paperwork is in order. Start yours today!
Applications for the Manitoba Livestock Cash Advance are available by calling 1-866-869-4008 (toll-free) or on the MLCA website.