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The Canadian Canola Growers Association (CCGA) is on a record pace in terms of the number of advances issued through the Advance Payments Program, as well as the dollars issued.
"What we've seen so far is a record-breaking year in terms of the number of advances as well as the dollar value of advances," said David Gallant, Director of Finance & Operations. "One the first day of the program this year, we issued over 1,500 farmers over $275 million in the cash advance program."
According to Gallant, the average advance is up almost 50 per cent for farmers this year.
He feels 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 which took effect June 20th.
The interest-free portion for a cash advance increased from $100,000 to $250,000 for the 2022 and 2023 programs, which Gallant says could save farmers who use the program up to $5,500 in interest costs over the next two years.
"Margins are getting narrower, and anywhere you can save costs, especially on working capital, is going to be valuable," said Gallant. "$5,500 isn't anything to sneeze at, so I think it's going to put more and more farmers looking at this kind of program to make sure they can maximize the savings they can get on their working capital needs."
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%.
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 at www.ccga.ca.
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.