Latest news with #PictureButteFeederCooperative
CBC
23-05-2025
- Business
- CBC
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 The order was rescinded on May 1, according to the province.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.
Calgary Herald
30-04-2025
- Business
- Calgary Herald
Progress being made to again provide loans for Picture Butte Cooperative members
The court-appointed restructuring officer for Alberta's largest cattle feeder association says progress continues to be made towards restoring the ability of the Picture Butte Feeder Cooperative (PBFC) to again make loans to its members. Article content Article content Alberta Agriculture and Irrigation Minister RJ Sigurdson issued an order Jan. 27 preventing the PBFC from making any new loans under the government-backed Feeder Associations Loan Guarantee (FALG) program. Article content Article content In the order, the ministry said the PBFC failed to comply with sections of the Feeder Associations Guarantee Act and the Feeder Associations General Regulation (FAGR). and also found some aspects of its operations to be 'unsound.' The order was based on Agriculture and Irrigation inspections between Sept. 7, 2023 and May 15, 2024 and a Nov. 18 report prepared based on the findings. Article content Article content Following the ministerial order, the Picture Butte Feeder Cooperative asked that Alvarez and Marsal Canada be appointed as the restructuring officer, and in February the company was appointed by a court, with a mandate to take the necessary steps to get the order lifted. Under the court order, all current board members were deemed to have resigned. Article content Article content On Monday, Alvarez and Marsal Canada said it has been working closely with the minister's office and lenders over the past several weeks to have the ministerial order lifted and negotiate updated credit term arrangements between the PBFC and lenders. Article content 'We anticipate providing a further update later this week on the timing of when PBFC will be back to 'operations as normal' to allow PBFC being able to provide loans to its Member's without restrictions,' wrote Alvarez and Marsal Canada senior vice-president Orest Konowalchuk in the April 28 update. Article content A spokesperson for Sigurdson said Wednesday the restructuring officer, acting as the PBFC board, 'still needs to solidify a few things operationally' before the ministerial order can be lifted. Article content In Monday's update to members, Konowalchuk had other progress to report, with Alvarez and Marsal hiring a local supervisor for the PBFC. Cody McBride, who has over 25 years of expertise in the agriculture and financial sectors, starts May 5. Article content 'This decision marks a significant step forward in ensuring PBFC's operational stability and progress,' wrote Konowalchuk about hiring McBride. Article content The restructuring officer is also hiring a permanent, full-time administrator and hopes to select a candidate 'in the very near term.' On March 5, an interim administrator, Lynda Miller, was hired following the resignation of the former administrator, according to a March 17 update to members. Article content Members were also informed March 17 that an inventory count was conducted between March 3 and 7. Inspection teams went to 52 farms and feedlots, and found cattle were properly identified and in good condition, and the correct number of cattle were present. Article content The Picture Butte Feeder Cooperative, established in 1991, helps members buy livestock through the Feeder Associations Loan Guarantee program, which, according to the province, provides easy access to low-interest, leveraged financing backed by a government guarantee. Under FALG, feeder associations are approved for a maximum revolving credit amount from lenders, and a portion of that amount is guaranteed by the Alberta government, resulting in members being able to get 'relatively straightforward and easy access to capital, that may not otherwise be available to the individual members,' reads an affidavit by former Picture Butte Feeder Cooperative vice chair and board member Tony Ankermann. As of Aug. 31, 2024, PBFC had 227 active and inactive members. As of Jan. 31, members owed PBFC $281,266,976 in total, under both the purchase and equity loan programs, and the PBFC owed the same amount to its lenders. Article content
CBC
13-03-2025
- Business
- CBC
Province suspends loan program at Alberta's largest cattle industry lender after inspections
The Alberta government has suspended a loan program at Picture Butte Feeder Cooperative, the province's largest cattle financing cooperative, after an inspection alleged a number of financial mismanagement and regulatory issues. The suspension could mean "a significant and unprecedented disruption" to members of the cooperative and their farming operations, according to one former official. The news comes as many Alberta ranchers are already worried about the financial impact of U.S. tariffs. The Picture Butte Feeder Cooperative, which formed in 1991, is part of the province's Feeders Association Loan Guarantee (FALG) Program, which helps livestock producers get easier access to loans. The cooperative is based in "Feedlot Alley," located in southern Alberta. The FALG program has been in place in Alberta since the Great Depression, and is intended to provide "relatively easy access to low interest, leveraged financing backed by a government guarantee," according to the province. In January, Alberta Minister of Agriculture and Irrigation RJ Sigurdson signed an order that stated the province would prohibit the cooperative from issuing further advances to its members under the program. The province's claims were attached to an affidavit for Tony Ankermann, who was vice-chairman of the cooperative, dated Feb. 18. They include that the cooperative allegedly accepted ineligible feeder members, used guaranteed loan proceeds for improper purposes, provided more advances than allowed and obstructed provincial inspections, among other violations. In response to the order, the cooperative sought court approval to appoint a restructuring officer, Alvarez & Marshal, to oversee its operations and work toward lifting the loan suspension. A number of board members resigned after the order was issued, while the remainder were set to resign upon the appointment of a restructuring officer, according to documents on Alvarez & Marshal's website. "In seeking the appointment of a restructuring officer, PBCF's intentions are to make the changes necessary within PBFC to ensure that PBFC is best positioned for continued operational success going forward, ideally with the support of the ministry and lenders," Ankermann wrote in the affidavit. Alvarez and Marsal consultants are now acting as if they were the PBFC board and staff while they handle business affairs, according to a statement from Alberta Agriculture and Irrigation. According to information posted to Alvarez & Marshal's website, PBFC owes a little more than $281 million to its lenders under the credit agreement, which it says is approximately the same amount the PBFC lent to its members. As of Aug. 31, 2024, the PBFC had a total of 227 active and inactive members, according to Ankermann's affidavit. Provincial inspections According to information posted to Alvarez & Marshal's website, a letter was delivered to the cooperative that stated the inspection and investigation section of Alberta Agriculture and Irrigation conducted inspections of PBFC between Sept. 7, 2023 and May 15, 2024. That inspection turned up the alleged violations, which triggered the suspension of the cooperative's loan program. Those findings were disputed. The PBFC had sought to seal Ankermann's affidavit, writing that it "contains a copy of the report and compliance memorandum, each of which reference certain findings of the ministry that are subject of significant dispute by certain parties." "The contents of the report may also be the subject of further legal proceedings by various parties, including PBFC," reads a bench brief posted to Alvarez & Marshal's website. According to a statement from Alberta Agriculture and Irrigation, there is no formal process for disputing a ministerial order under the Feeder Associations Guarantee Act. However, affected parties could consider applying for a judicial review. A spokesperson for Sigurdson declined an interview request, writing in a statement that "to protect the confidentiality of Albertans, Agriculture and Irrigation has a policy to not make compliance records public." "Twice per year, Agriculture and Irrigation inspects feeder associations that participate in the Feeder Association Loan Guarantee Program to ensure compliance with its rules," wrote Darby Crouch in an email. The Alberta government has agreed to guarantee 15 per cent of PBFC's loan facility, Ankermann's affidavit states. It goes on to say that the government guaranteed to cover up to $60 million, but reduced that to $50.25 million on July 17, 2024. Possible 'significant and unprecedented' disruption Given the order, Ankermann's affidavit states that PBFC is presently unable to provide quick and reliable access to funding for members. In seeking a restructuring officer, Ankermann warned about impacts should members be unable to access funding or obtain financing elsewhere. Given the ministerial order, the PBFC said its members cannot currently access financing that it said is "critical to many members' operations and livelihoods." "If … PBFC is unable to satisfy the compliance requirements [laid out in the order], there will be a significant and unprecedented disruption to the members and their respective farming operations," the affidavit reads. "This has the potential of creating a ripple effect throughout the Picture Butte area, considering that PBFC is the largest feeder association in Alberta." It goes on to state that "rumours are spreading throughout the Picture Butte community about the order and PBFC" and that "urgent attention is required to bring stability and restore confidence in PBFC." Curtis Vander Heyden, vice chair of Alberta Cattle Feeders Association, an advocacy organization for beef producers, wrote in an email that there was currently "stress and concern" in two ways when it came to the situation. First, he understands some members that own cattle financed by PBFC can't currently advance additional funds to cover feed costs, he said. Second, he believes others have security deposits or approved funding tied up and can't use it to purchase livestock. "We want to ensure [the FALG program] remains viable and available to producers," Vander Heyden wrote in an email. CBC News sent emails to all of the cooperative's most recent board of directors listed in the receivership documents. Some declined to comment, while others have yet to respond. George L'Heureux, a spokesperson for the Feeder Association of Alberta — the umbrella organization to which feeder associations in Alberta belong — said the provincial board was working with all parties involved to come to a timely resolution.
