The Advance Payments Program is off to a “robust start” according to the Canadian Canola Growers Association (CCGA), one of the organizations that administers the program.
The first cash advances were distributed Tuesday, with over $310 million going to more than 1,750 farmers across Western Canada, noted the CCGA.
Farmers can apply for up to $1 million in financing with the first $250,000 interest-free and the remaining amount at CCGA’s interest-bearing rate of prime less 0.25 per cent.
“We’ll continue issuing $20 million a day for the next two weeks as we see massive demand for the program this year,” said Dave Gallant, vice-president of Finance and APP Operations with the CCGA.
Gallant says applications have increased 25 per cent compared to the same time last year. The increased demand could be partially due to the increase in the interest-free portion of the loan to $250 thousand, he said, but has heard other reasons as to why farmers are applying.
“I think maybe number one might be the poor rail performance we’re seeing in the west right now,” Gallant said. “A lot of elevators aren’t able to take grain, which means a lot of farmers aren’t able to deliver. Prices are soft right now, input costs are going up, so there’s a variety of things impacting farmers that are driving their need for increased cash flow this spring.”
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