FINANCING FOR BACKGROUNDING, FINISHING, OR PLACING IN A FEEDLOT
Producers Livestock Credit Corporation
If a customer prefers to feed cattle at a custom feedlot other than his own, margin equity per head is required and PLCC will advance for all feedlot costs until the cattle are sold. Generally, a $175.00 per head equity margin is required for cattle that are to be back grounded; a $200.00 per head is required for the finishing of beef cattle, and $250.00 per head is required for the finishing of Holstein steers. These requirements may change depending upon current market conditions.
The feedlot must be an approved feedlot by PLCC. When cattle are sold, the proceeds will be sent directly to PLCC. PLCC will apply the proceeds to the purchase price of cattle, interest, feed, yardage, marketing fees, and any other applicable expenses, transportation, ear tags, and/or branding expenses. The remaining equity will be distributed to the customer and/or lender. In all cases, should a deficiency exist on the promissory note after the cattle are sold, the customer will be responsible for the shortfall.
To discuss this program or make a loan application, call us at: