Earlier this week, the Canadian Canola Growers Association (CCGA) issued their first cash advances with the 2025 Advance Payments Program for the upcoming growing year. More than 1750 producers across Western Canada received more than $310 million to finance their operations. Dave Gallant, Vice President of Finance and APP operations at CGA, talks about the benefits of the program for Western Canadian producers.
“The Advanced Payments Program is a federal government program that allows farmers to get money for their inventory without having to sell it. What's really good about the program at this time of the year is that for grain and oilseeds producers, you can get a cash advance for what you're about to grow. So as long as you have crop insurance, AgriStability or Global Ag Risk, you can get a cash advance.”
The program allows producers to borrow up to $1 million, with the first $250,000 interest-free and the remaining at CCGA’s interest-bearing rate of prime less 0.25%. That means the entirety of the loan is under prime rate, something most financial institutions are unable to do. Gallant also states that this money is flexible within the producer's operation, perfect for the hectic start of the growing year.
“There are no limitations on how the funds are used. So, every farmer can make a choice; whether it's on the grains and oilseed side, buying seed, fertilizer or whatever they need to get the crop in the ground or for those who raise animals to help raise those animals and get them to market.”
Last year, the CCGA issued over 10,000 advances to farmers worth nearly $2.5 billion in Western Canada. For 2025, they’re currently 25% ahead of the pace for this time of year, which would mean 12,500 producers would receive over $3 billion at this pace. Gallant states, the interest-free and low interest borrowing coupled with the flexibility of the usage is the main reason they’re seeing more applications.
“A lot more farmers are looking at the program as they deal with their cash flow situation this spring and that's what the program is for. It’s to put cash in their hands at a very low cost so that they can do what they need to do to succeed on their farm.”
For more information on the 2025 Advance Payment Program and how to apply, contact the CCGA at 1-866-745-2256 or visit their website at ccga.ca.