“The federal Advance Payments Program (APP) has been expanded over time to accommodate a wider range of farming enterprises,” says Neil Blue, provincial crops market analyst with the Alberta government. “Under the program, producers can obtain up to $1,000,000 per program year in total advances.”
In May 2023, the federal Minister of Agriculture and Agri-Food announced an increase to the interest-free portion of the APP to $350,000 for the 2023 program year. The change is intended to “generate more savings for farmers so they can maintain production to sustain their livelihoods through challenging times.” The balance of the advance above the $350,000 interest-free portion to an individual maximum bears a reasonable interest rate.
The eligible cash advance is based on up to 50% of the anticipated market value of eligible agricultural products on hand or to be produced. For advances on agricultural products that either are in production or are non-storable, and for advances on animals or animal products, additional security is required. This additional security includes one or more of the potential proceeds from a relevant business risk management program, such as AgriInsurance, AgriStability, or another acceptable form of security.
Click here to see more...