Alberta's largest cattle industry lender to restart loan program after province lifts order

The Alberta government says loans will resume at Picture Butte Feeder Cooperative, the province's largest cattle financing co-op, now that it's compliant with the rules on feeder associations.

The PBFC is part of the province's Feeders Association Loan Guarantee (FALG) Program, which helps livestock producers get easier access to loans. 

Earlier this year, then-minister of Agriculture and Irrigation, RJ Sigurdson, signed an order that stated the province would prohibit the co-op from issuing further advances to its members under the program. An inspection had alleged a number of regulatory and financial mismanagement issues. 

The entire board subsequently resigned, and a restructuring officer, Alvarez & Marsal, was appointed to oversee PBFC's operations and work toward lifting the loan suspension.

The order was rescinded on May 1, according to the province.

"The co-operative, working under Alvarez and Marsal Canada's sound management, has brought its operations into compliance with the rules governing feeder associations. It is now compliant with the rules on feeder associations and is being operated soundly," reads a statement from the Office of the Minister of Agriculture and Irrigation.

"On Monday, May 26, producers can confidently apply for and receive loans from the PBFC as it resumes full operations.

"The government will continue to provide oversight of and advice to the PBFC — and other feeder co-operatives — to ensure the Feeder Associations Loan Guarantee Program continues with its success."

An 'exceptionally trying time'

The Feeder Association of Alberta, the provincial umbrella organization, said the past few months have been "an exceptionally trying time for the many members of PBFC that have had their operations put on hold through no fault of their own."

"We recognize the pace of business has no sympathy for interruptions and acknowledge the very tough financial position members were placed in," the organization wrote in a release issued Thursday.

George L'Heureux, a spokesperson for the Feeder Association of Alberta, said it will be "business as usual" starting Monday morning, with normal lending scheduled that day.

"For the producers, boots on the ground, it's been very challenging … waiting and not knowing is huge, and not being able to do business as usual was quite a hardship on quite a few," he said.

The co-op will still be run by the receiver for the time being. According to Alvarez & Marsal, a new local supervisor, Cody McBride, has been appointed.

Efforts are underway to run a fair and transparent election to appoint a new board of directors, the receiver added. 

The co-operative is based in "Feedlot Alley," located in southern Alberta.