Alberta Milk says five new dairy producers across Alberta will be loaned quota to help alleviate some of the startup costs normally incurred when starting a dairy farm.
Under Alberta Milk’s New Entrants Assistance Program, the five were chosen from a process to help decipher the ones who would have the most success. They provided a two-year financial business plan, a 10-year implementation plan, a risk mitigation plan, and a signed letter from the applicant’s financial institution agreeing to finance their operation.
Following the submission of their documentation, they were interviewed by a committee comprised of industry experts and financial institutions to assess their application and determine the strongest applicants.
One of the successful applicants was Alex and Alinda Bakker. “Before the New Entrant Program, it would have taken several years for us to achieve our dream of owning a dairy farm,” the Bakkers said in an Alberta Milk release.
In addition to the Bakkers, the four other people on the program needed to purchase quota. The quota purchased will then be matched with a loan of quota from Alberta Milk up to a maximum of 15 kg/day at no cost to the new entrant. The quota loan would gradually expire starting the end of year six. At the end of year eight, the quota loan would reduce to zero. While using the program, new entrants can expand up to 60 kg/day of quota holdings.
Alberta Milk says it will continue to make this an annual program, and will be accepting applications for 2012 beginning in January.