Province suspends loan program at Alberta's largest cattle industry lender after inspections

Joel Dryden · CBC News

· Posted: Mar 13, 2025 12:34 PM EDT | Last Updated: 4 minutes ago

The Alberta authorities has suspended a indebtedness programme astatine Picture Butte Feeder Cooperative, the province's largest cattle financing cooperative, aft an inspection alleged a fig of fiscal mismanagement and regulatory issues.

The suspension could mean "a important and unprecedented disruption" to members of the cooperative and their farming operations, according to 1 erstwhile official. The quality comes arsenic galore Alberta ranchers are already disquieted astir the fiscal interaction of U.S. tariffs. 

The Picture Butte Feeder Cooperative, which formed successful 1991, is portion of the province's Feeders Association Loan Guarantee (FALG) Program, which helps livestock producers get easier entree to loans. The cooperative is based successful "Feedlot Alley," located successful confederate Alberta.

The FALG programme has been successful spot successful Alberta since the Great Depression, and is intended to supply "relatively casual entree to debased interest, leveraged financing backed by a authorities guarantee," according to the province.

In January, Alberta Minister of Agriculture and Irrigation RJ Sigurdson signed an bid that stated the state would prohibit the cooperative from issuing further advances to its members nether 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 see that the cooperative allegedly accepted ineligible feeder members, utilized guaranteed indebtedness proceeds for improper purposes, provided much advances than allowed and obstructed provincial inspections, among different violations. 

In effect to the order, the cooperative sought tribunal support to name a restructuring officer, Alvarez & Marshal, to oversee its operations and enactment toward lifting the indebtedness suspension. 

A fig of committee members resigned aft the bid was issued, portion the remainder were acceptable to resign upon the assignment of a restructuring officer, according to documents connected Alvarez & Marshal's website. 

"In seeking the assignment of a restructuring officer, PBCF's intentions are to marque the changes indispensable wrong PBFC to guarantee that PBFC is champion positioned for continued operational occurrence going forward, ideally with the enactment of the ministry and lenders," Ankermann wrote successful the affidavit.

Alvarez and Marsal consultants are present acting arsenic if they were the PBFC committee and unit portion they grip concern affairs, according to a connection from Alberta Agriculture and Irrigation.

According to accusation posted to Alvarez & Marshal's website, PBFC owes a small much than $281 cardinal to its lenders nether the recognition agreement, which it says is astir the aforesaid magnitude the PBFC lent to its members.

As of Aug. 31, 2024, the PBFC had a full of 227 progressive and inactive members, according to Ankermann's affidavit.

Provincial inspections

According to accusation posted to Alvarez & Marshal's website, a missive was delivered to the cooperative that stated the inspection and probe conception of Alberta Agriculture and Irrigation conducted inspections of PBFC betwixt Sept. 7, 2023 and May 15, 2024.

That inspection turned up the alleged violations, which triggered the suspension of the cooperative's indebtedness program. 

Those findings were disputed.

The PBFC had sought to seal Ankermann's affidavit, penning that it "contains a transcript of the study and compliance memorandum, each of which notation definite findings of the ministry that are taxable of important quality by definite parties."

"The contents of the study whitethorn besides beryllium the taxable of further ineligible proceedings by assorted parties, including PBFC," reads a seat little posted to Alvarez & Marshal's website.

According to a connection from Alberta Agriculture and Irrigation, determination is nary ceremonial process for disputing a ministerial bid nether the Feeder Associations Guarantee Act. However, affected parties could see applying for a judicial review.

A spokesperson for Sigurdson declined an interrogation request, penning successful a connection that "to support the confidentiality of Albertans, Agriculture and Irrigation has a argumentation to not marque compliance records public."

"Twice per year, Agriculture and Irrigation inspects feeder associations that enactment successful the Feeder Association Loan Guarantee Program to guarantee compliance with its rules," wrote Darby Crouch successful an email. 

The Alberta authorities has agreed to warrant 15 per cent of PBFC's indebtedness facility, Ankermann's affidavit states. It goes connected to accidental that the authorities guaranteed to screen up to $60 million, but reduced that to $50.25 cardinal connected July 17, 2024.

Possible 'significant and unprecedented' disruption

Given the order, Ankermann's affidavit states that PBFC is presently incapable to supply speedy and reliable entree to backing for members. In seeking a restructuring officer, Ankermann warned astir impacts should members beryllium incapable to entree backing oregon get financing elsewhere.

Given the ministerial order, the PBFC said its members cannot presently entree financing that it said is "critical to galore members' operations and livelihoods."

"If … PBFC is incapable to fulfill the compliance requirements [laid retired successful the order], determination volition beryllium a important and unprecedented disruption to the members and their respective farming operations," the affidavit reads.

"This has the imaginable of creating a ripple effect passim the Picture Butte area, considering that PBFC is the largest feeder relation successful Alberta."

It goes connected to authorities that "rumours are spreading passim the Picture Butte assemblage astir the bid and PBFC" and that "urgent attraction is required to bring stableness and reconstruct assurance successful PBFC."

Curtis Vander Heyden, vice seat of Alberta Cattle Feeders Association, an advocacy enactment for beef producers, wrote successful an email that determination was presently "stress and concern" successful 2 ways erstwhile it came to the situation.

First, helium understands immoderate members that ain cattle financed by PBFC can't presently beforehand further funds to screen provender costs, helium said. Second, helium believes others person information deposits oregon approved backing tied up and can't usage it to acquisition livestock.

"We privation to guarantee [the FALG program] remains viable and disposable to producers," Vander Heyden wrote successful an email.

CBC News sent emails to each of the cooperative's astir caller committee of directors listed successful the receivership documents. Some declined to comment, portion others person yet to respond.

George L'Heureux, a spokesperson for the Feeder Association of Alberta — the umbrella enactment to which feeder associations successful Alberta beryllium — said the provincial committee was moving with each parties progressive to travel to a timely resolution.