Manitoba Livestock Cash Advance Program



How Does the Program Work?

  • The Production Periods are 24 months in length for Cattle and Bison Producers and 18 months for Crops and all other livestock commodities, beginning April 1st.
  • Continuous Flow (Livestock Feedlots) cash advances are a 12-month term, not exceeding the end of a production period.
  • Producers repay at the same advance rate per head as chosen at the time of their advance, which is approximately 50% of the market value of the commodity. This allows for any additional income to be retained by the producer.
  • The Cash Advance must be repaid within the Production Period and repayments of the agricultural product are to be made as the commodities are sold and proof of sale provided to MLCA.
  • Producers must be actively participating in an eligible Business Risk Management Program (BRM). Cattle Producers can secure the loan using Agristability or Livestock Price Insurance (excluding breeding inventory). All other livestock commodities must use Agristability.  Crop Producers can use either Crop Insurance or Agristability.
  • Please note that advances are limited to a maximum of $1,000,000.00, with the federal government paying the interest on the first $100,000.00 of the advances on all commodities. (NEW temporary increase to interest free limit for the 2022 Program Year of $250,000.00 and 2023 Program Year of $350,000.00)
  • All repayments made are put towards the interest free portion of all advances first.
  • A Producer cannot designate only a portion of the production of a product as being under the advance. This means that a repayment must be made starting with the FIRST SALE in a Production Period of an agricultural product on which the advance was taken. A Producer cannot sell a portion of the agricultural product(s) without making repayments and then wait to make repayments from the proceeds of the sale of later portions of the agricultural product(s)

Using Livestock Price Insurance (LPI) as the BRM,

the following criteria must be met:

  • The cattle for which the advance is based must be the same animals for which the LPI contract is purchased, this may require an on-farm inspection by MLCA to verify the inventory.
  • The Producer must provide MLCA with a copy of the LPI contract (Statement of Coverage and Premium), which is issued through MASC in Manitoba or SCIC in Saskatchewan. The Producer must show they have fully paid their LPI premium prior to issuance of an advance.
  • The Producer must maintain continuous LPI Contract coverage throughout the duration of the cash advance, until the animals have been marketed. This may require a new contract to be purchased from LPI.
  • Producer must still make payments to the advance as their inventory is sold and provide payment within 30 days of the sale and provide proof of sale with the payment.
  • Where the Producer makes a claim against their LPI contract (allowable at any time within 30 days of the contract expiration date) or where the LPI contract expires and the Producer has not yet marketed the animals, the producer is in an overpayment situation. The Producer has 60 days to repay the loan in full or go into default.
  • The Producer must complete an Assignment of Indemnity Form to ensure that MLCA receives the proceeds from a LPI claim.

For more information on LPI call:

Manitoba: 1-844-782-5747

Saskatchewan: 1-888-935-0000


 Standard APP Advance: Livestock 

  • Advance is based on the number of live heads. Choose the rate per head that is closest to the anticipated selling weight of the animals. Market Breeding inventory are now eligible (these are animals intended to be marketed as breeding inventory).
  • Producers must provide confirmation of participation in Agristability for the current year.
  • Sale proceeds of Livestock must go directly on the advance within 30 days of receipt of payment from the buyer. Proof of sale must be provided with your payment. 
  • Repayments are calculated using the rate per unit in effect at the time of the advance.
  • Proof of sale must be provided or the penalty is prime plus +0.25% charged back to the date of advance.
  • Repayments made past 30 days will be charged a late penalty for the number of late days at Prime +0.25%

Continuous Flow Operations: Livestock: 12 Month Advance (i.e.: Feedlots or revolving inventory)

  • Continuous Flow Operation means a "farming operation where the animal inventory remains constant during the production cycle through continuous rotation of animals (animals sold or disposed of are immediately replaced with new ones)." *Only one Continuous Flow loan can be taken per program year.
  • Proof of sale is required by maturity date, based on the number of heads that were originally pledged, or the penalty is prime plus +0.25%
  • Repayments are calculated using the rate per unit in effect at the time of advance.
  • No CCIA tags required.
  • Repayments are made at the end of the 12 month term. Ensure that you have sale slips for at least the number of head that was originally pledged. Proof of sale must be from within the 12 month term of the advance.
  • The advance is calculated using the amount of inventory that you wish to pledge for an advance. Please put the heads into the category of their anticipated selling weight. Breeding inventory are not eligible

Grain/ Oilseeds  Advances: 

  • 18 month production period
  • Producers must provide confirmation of crop insurance 
  • 1st Instalment: Based on intended seeded acreage (60% of advance amount)
  • 2nd Instalment: Based on Actual seeded acreage (Remaining 40% of requested advance) - due by July 31
  • Post-Production: Advance based on commodity that has been harvested and in the bin -due by Dec 31. * A bin inspection may be required. If a Producer fails to supply the Post Harvest Report by the deadline all outstanding balances in that Production period will be placed into default.
  • If an over payment is triggered after the Post Harvest has been processed; Producers will have 30 days to make the repayment of the amount to the Administrator, or all outstanding amounts in that Production period will be placed into default.
  • Stored Advance: Advance that is based on product that is in the bin. Producer must provide a Harvested Production Report and a bin inspection may be requested.
  • Repayments are to be made within 30 days from receipt of payment from the buyer. Repayments made prior to Jan 31 do not require proof of sale, all payments made after that date require proof of sale.
  • Repayments made without proof of sale after Jan 31 will be charged a penalty of Prime +0.25% back to the date of advance.
  • Repayments made past 30 days with proof of sale will be charged at late penalty for the number of late days at Prime plus +0.25% 
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