As grain prices have gone up, the feeder calf prices have dropped. Cow-calf producers, who have feed at home and are able to feed these calves to higher weights, have a way to improve the value of those animals. The problem for many is that the calves are worth less, so their cashflow is down. They don't have the financing capability to feed these animals longer because they need some sort of financing arrangements.
In this market the bank isn't the friendliest place to go right now if you're in the livestock industry. To be able to maintain these animals, raise them to higher weights, or maybe sell some cows and restructure their farm--all this needs cash, and they need it in a hurry.
I think the loan program is particularly helpful for the smaller cow-calf producers and not very helpful for the feeding sector.