Ottawa, Ontario – Agriculture and Agri-Food Canada
Agriculture and Agri-Food Minister Marie-Claude Bibeau announced that the Government of Canada has implemented the new regulations necessary to strengthen the Advance Payments Program, as announced on May 1st.
These changes will provide farmers with more cash flow, providing them flexibility to manage their farm operations, adjust their marketing plans and explore new market opportunities. Strong and stable markets for our high-quality Canadian canola means more money in the pockets of our farmers and supports good, middle-class jobs for Canadian farm families.
The amendments made to the Agricultural Marketing Programs Regulations increase loan limits from $400,000 to $1 million for all producers on a permanent basis, and increase the interest-free portion of loans on canola advances from $100,000 to $500,000 in the 2019 program year under the APP. Producers of all other commodities can continue to receive up to $100,000 interest-free.
With the regulations now in place, government officials are working with the 36 program administrators to revise contracts, operating procedures and to ensure system changes are properly implemented, and are working as efficiently and effectively as possible. Producers will be able to apply for the new amounts as early as June 10 and new advances above $400,000 will be issued as of June 26.
Producers are encouraged to contact their APP administrator regarding application details and processing timelines. In the meantime, the Government continues to provide producers access to the current advance limit of $400,000, which effective immediately, is interest-free for all canola advances.
These changes will help farmers manage their cash flow, giving them more flexibility during a time of market uncertainty.