Thank you very much, and I apologize for the problems. Maybe I'll just take over where Michel left off and talk a little bit about the challenges of COVID-19 that have hit the beef industry.
There has been a dramatic reduction in beef processing capacity in both Canada and the U.S., and this has caused cattle to back up along the entire beef chain. The current backlog is around 130,000 animals and it's growing by 6,000 to 9,000 head per day. The additional costs of feeding these backed-up cattle is around $3.50 to $4.00 per head per day. Right now this is costing cattle feeders in Canada around half a million dollars.
Fed cattle prices have also collapsed, generating a severe cash flow issue and liquidity problems. Markets have been severely impacted by uncertainty, volatility and even panic selling. Current losses are up to $600 per head. An average feedlot with 15,000 head capacity is thus seeing additional feeding costs of some $50,000 per day and a loss of $7.5 million in revenue when the cattle are brought to market.
The priority issue for NCFA is to ensure that processing facilities get up and running as soon as possible, that they can move forward and that prices can stabilize, but there are many challenges to overcome before processing capacity can return to normal. Until such time, cattle feeders need the support of the government to remain viable.
We have been monitoring the supports for cattle producers in the U.S., and whatever happens south of the border has a competitive impact on the industry north of the border. The U.S. is providing direct payments to cattle producers of $5.1 billion U.S. An investment in the Canadian cattle industry of $600 million would be roughly equivalent to the U.S. investment.
We appreciate the open and transparent communication that's been happening between the government and the sector throughout the pandemic, and we share a common goal around the table of having a reliable and safe beef supply for Canadians and a competitive Canadian beef sector. We thank the government for the support announced last week. However, it falls significantly short of what is required, and we would like to respectfully outline some of the reasons why today.
The government noted in its announcement that the agriculture sector already has $1.6 billion available through current business risk management programs. The government has also noted that there's $2.3 billion sitting in the AgriInvest accounts of producers, but these funds are not always accessible to farmers, and this is especially so with Canada's cattle feeders. AgriInvest is a producer government savings account that helps farmers manage small income declines and makes investment to manage risk and improve market income. However, given the collapse in market prices for cattle, approximately 85% of all beef processing is currently at risk, so it's quite likely that beef producers have already drawn what they can from their AgriInvest accounts.
Of the $1.6 billion paid out in AgriStability, AgriInsurance and AgriInvest, $1 billion comes out in the form of insurance payments for producers for production failures, primarily for crops. Then of the remaining $600 million, about $300 million is allocated to AgriInvest, and matching programs, which I previously mentioned, can help only those who are able to put savings into their accounts. The remaining $300 million is largely used in AgriStability for direct payments to producers experiencing severe income decline. This is allocated to all agricultural producers.
The COVID pandemic is not a normal business occurrence and it cannot be addressed by the business risk management programs in the current format. The government announcement last week of $50 million for the fed cattle set-aside program is certainly appreciated, but the reality is that the current backup at the farm gate is 130,000 cattle, which are costing producers around $500,000 per day to maintain, and their value has fallen from $250 million to $165 million. The backup at the farm gate will continue to grow in the coming weeks, and the sector needs a more significant financial commitment.
The NCFA is also calling for a number of supports that were not part of the recent announcement and will help to provide cattle producers the support they drastically need. We're requesting changes to the current business risk management programming to benefit cattle ranchers and feeders.
Under AgriStability, we're asking for the $3-million cap to be removed. For an average feedlot, this cap already removes them from being able to access these dollars. We're also asking for other AgriStability changes, such as increasing the trigger from 75% to 85% for the remainder of CAP, the partnership agreement; invoking the late participation clause, to allow producers access to the needed support; and removing the reference margin limiting, for meaningful and longer-term support.
A serious issue for cattle feeders managing this pandemic is business liquidity. The spring is a very busy time of the year for farmers and the need to purchase inputs is acute. With significant losses due to falling market prices and with not being able to move their cattle, feeders need access to financing.
We've asked the government to issue a stay of defaults under the advance payments program used to finance the purchase of cattle. This would increase liquidity by extending the repayment further down the road. The interest-free portion of the program should also be increased, as this is particularly useful for younger cattle producers with less liquidity in their business operations.
We call for the government to increase federal financial backstops and loan guarantees to banks and financial institutions, allowing producers access to expanded operating credit limits and increased liquidity. We also request that the government ensure that chartered banks and financial institutions pass on the interest rate reductions. This is key to maintaining liquidity in the cattle industry.
We recognize that all sectors are calling upon the federal government for support through this pandemic, but besides health care, there can be no more critical sector than food, and we ask that additional federal supports be provided accordingly.
Thank you for your consideration.