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Federal Agriculture Minister Lawrence MacAulay is raising the interest free limit on the 2024 Advance Payments Program.
The Advance Payments Program gives producers access to cash advances of up to $1 million, with the first $250 thousand dollars now being interest free.
He says in the face of so many challenges, our hardworking producers continue to show their resilience and produce top-quality products for Canadians, and the world.
" Increasing the interest-free portion of the Advance Payments Program means improved cash flow and savings for farmers as we head into the 2024 planting season."
The government says the $250 thousand dollar interest free portion will now mean over 11,900 participating producers will save an additional $4,900 on average in interest costs ...
for a total savings of up to $58.7 million.
Under the program, the normal limit is set at $100,000 but was increased to help give producers access to additional cash flow and interest savings to help cover costs until they can sell their product.
Quick Facts
- Under the Advance Payments Program, cash advances are calculated based on up to 50% of the anticipated market value of eligible agricultural products that will be produced or are in storage. The program is delivered through 27 industry-led associations.
- Advances are available on over 500 crop and livestock products across Canada.
- In 2022, due to exceptional circumstances, the Government of Canada increased the interest-free portion of the Advance Payments Program from $100,000 to $250,000 for the 2022 and 2023 program years. As pressures compounded in 2023, the limit was further increased from $250,000 to $350,000 for the 2023 program year.
- Producers have access to a suite of business risk management (BRM) programs to help them manage significant risks that threaten the viability of their farms and are beyond their capacity to manage. The suite includes the core programs of AgriStability, AgriInsurance and AgriInvest.
- BRM programs are often the first line of support for producers facing disasters. Farmers are encouraged to make use of these programs to protect their farming operation.
Details on the Advance Payments Program can be found here.