The Grand Government of Manitoba?

[kato]

How's this for government support? Got a letter in the mail about the low interest loans the government of Manitoba kindly offered to everyone last fall. This was up to 50 thousand dollars, at 2%, to help us out in our time of need.

Guess what? It's not so low interest any more. The letter said it was going up to 3.25%. The reason why? Because it could. That's it, just because it could. The letter says that there was a clause in the note saying they could raise the interest rate in the second year, so they were. No other reason.

Now, correct me if I'm wrong, but aren't we in the same boat as last year? Except deeper in debt, and one year farther away from the times we used to have cash to operate with? Why raise interest now?

Is this where the money is coming for the set aside program? Or the support for Rancher's Choice?

And we thought the banks were greedy...

[crossfield_beef]

3.25% is still pretty cheap. Considering that the majority of voters in Manitoba are urban, you should consider yourself lucky.

I wish you good luck in your farming decisions this winter. Things can only get better.

I know how tough things have been for all of us these past years. Think how difficult it is for somone working in town, making only $10 per hour and trying to raise a family. More and more people in towns are fitting into the classification of "Working Poor". And they do not have hope that someday the American border will open to live cattle and that our incomes might impove.
There are a few people with good jobs that are experiencing better times but the majority are not. How would you like to own a farm machinery dealership these days? Lets hope that interest rates do not soar to very high levels as they have in the past.
Keep you chin up. Good Luck with your decisions.

[cakadu]

Kato - did they give any advance warning of the interest rates going up, or is the letter the notice that it will be going up in so many days? effective immediately? Does it affect the amount of the payment that will have to be made? At the time of signing did they make mention of the potential for a hike in the rate?

Certainly not good news amidst everything else.

[kato]

I don't remember reading any clause. It was probably there though. It always is.

I realize that 3.25% is still reasonable, but I wish when they do this they would be just as eager to let the media know that they've raised the rates as they are when they do something to our benefit. Selective reporting, in my book. Give with one hand, and take away with the other. People in the city only hear one side of it.

This time next year they want all the money back, too. That won't make the news! Or else they will term it out at who knows what rates they feel are good at the time. And with what security. I'm hoping this fiasco is all behind us by then so it won't cause too much harm to come up with the cash.