Farm Credit Canada is offering support for hog-producing customers facing financial hardship as a result of international trade disputes.

Hog prices in Canada have declined by 30 per cent over the last several weeks due to a rising supply of pork in the U.S. and tariffs on U.S. pork exports applied by large pork importing countries. The subsequent collapse in U.S. hog prices has also brought down prices in Canada to a level where many operations are no longer profitable.

“The impact on the market happened so fast that many producers didn’t have an opportunity to forward contract or lock in at profitable prices,” said Michael Hoffort, FCC president and CEO. “Customers who are hog producers might not have the financial flexibility and may need some cash-flow relief to make it through the current price squeeze.”

FCC will work with customers to come up with solutions for their operation and will consider deferral of principal payments and other loan payment schedule amendments to reduce the financial pressure on producers impacted by the price drop.

"We understand that commodity price disruptions can have a significant impact on farmers and I am pleased FCC is standing behind its customers during this stressful time," said Lawrence MacAulay, Minister of Agriculture and Agri-Food Canada.