A recent change to the Advance Payments Program (APP) could save farmers who use the program up to $5,500 in interest costs over the next two years. The enhancement, announced on June 23 by Agriculture and Agri-Food Minister Marie-Claude Bibeau, will see the interest-free portion for a cash advance increased from $100,000 to $250,000 for the 2022 and 2023 programs.
“This change becomes effective June 20, and we’re eager to sort out the program details with the APP staff as quickly as possible so that farmers, both those who already have their 2022 cash advance along with those who will apply in 2022, can benefit from these changes,” says Dave Gallant, Director of Finance & Operations at Canadian Canola Growers Association (CCGA). “With higher input costs, rising interest rates, and continued pressure from weather impacts and supply chain challenges, many farmers will be keen to access the increased benefit soon.”
CCGA has nearly 40 years of experience providing cash advances to farmers across Western Canada. Through CCGA, farmers can access advances on over 50 commodities including crops, livestock, and honey. Farmers can apply for a cash advance of up to $250,000 interest-free and to a maximum of $1,000,000. The interest-bearing portion is charged an interest rate of prime less 0.75%.
“CCGA will be reaching out to our existing customers in the near future to explain the impact of this program change and any actions that will be required on their part,” says Gallant. “We hope to make the process seamless and easy for farmers.”
Farmers considering a cash advance for the first time are encouraged to call CCGA at 1-866-745-2256 to apply over the telephone. Existing customers can use the self-serve options available from their online account, apply over the telephone, or download an application form.
“CCGA appreciates steps taken by Minster Bibeau to provide solutions to the challenges facing farmers today,” says Rick White, President & CEO at CCGA. “We look forward to working through the administrative changes needed to implement this increased interest-free limit as soon as possible.”
The Advance Payments Program is a federal loan program administered by CCGA. It offers Canadian farmers marketing flexibility through interest-free and low-interest cash advances.Click here to see more...