Alberta is increasing the Feeder Association Loan Guarantee Program to $150 million.

Under the program, feeder association members use the guarantee to secure capital to buy beef calves and sheep.

Those animals are then fed for a number of months before being sold at market.

Minister of Agriculture and Irrigation Nate Horner says it's a popular program for producers.

"It is currently at $100 million and it's completely full and used up. In fact, in the last few weeks the boards done a good job of being nimble and moving things around so associations have stayed able to lend this money to their patrons, but it's entirely full."

He notes with cattle prices up 25 per cent, this increase will allow Alberta’s feeder associations greater access to low-interest capital loans.

"The main reason for the growth and need for raising of the guarantee is the price of cattle. Cattle have gone up quite a bit in the last decade. So if you take a young farmer with a static land base that wants to buy X number (200 head) of stocker cattle. They still want to run the same amount of cattle, but it costs twice as much. So that's why the guarantees had to grow the way it has."

The program typically finances almost a quarter of the calf crop each year.

There are currently 45 local feeder associations and 2,000 livestock producers who are members of their local feeder associations in Alberta.

Since the Feeder Association Loan Guarantee Program began in 1936 it has guaranteed $11 billion in private financing to Alberta livestock feeders.