General Information Regarding the Advance Payments Program

• The Advance Payments Program (APP) for spring crops is an 18-month program. Advances can be issued pre-harvest or post-harvest. A pre-harvest advance can be issued based on seeding intentions (Intended Seeded Pre-Harvest Advance) or confirmed seeded acreage (Actual Seeded Pre-Harvest Advance). A post-harvest is based on inventory in-store. 

• The Advance Payments Program (APP) for winter cereals is a 24-month program, beginning October 1st of each program year.

• Producers are eligible to receive up to $400,000 (total of all cash advance programs), with the first $100,000 being interest free. Two program years may overlap, but the $400,000 limit may not be exceeded during the overlap period.
  

• Three percent (3%) of the advance will be withheld to cover the liability to Agriculture and Agri-Food Canada if the account goes into default.

• Separate rates will be established for pre and post-harvest advances. Pre- and post-harvest rates are effective April 1st and September 1st respectively, of each program year. New rates will be posted on CCGA's website as soon as they are available.
  
  
• Producers have the option of using production insurance and/or AgriStability as security for a pre-harvest advance for spring planted crops. A pre-harvest adavce for fall seeded crops can be secured with production insurance only. Proper documents for each type of security must accompany every application. AgriStability may only be used as security on crops not covered by production insurance. Applications on which the producer has used BOTH types of security will be charged an additional $75.00 administration fee.
  
  
• A production insurance Coverage Detail Document or AgriStability Enrollment Notice showing the final security level/amount must be sent in with all initial applications.
  
  
• For producers new to the program since 2007, ALL applicable forms will need to be completed in full. These forms include the Producer's Declaration Form, the Joint & Several Liability Continuing Guarantee, the Guarantee Acknowledgement Certificates, the Saskatchewan Farm Security Waiver, and the EFT form.
  
  
• Applications will be returned to the producer if they are not completed in full. Please take care to ensure all spaces are filled in.
  
  
• Full legal names are required for ALL producers. This includes first, middle, and last names. Completed applications can be submitted by mail or fax at 204-788-0039.
  
  
• Dates of birth are required for all producers. If there are multiple shareholders, we require this information for each entity.
  
  
• The producer is required to have a priority agreement completed by their financial institution as well as by any crop inputs suppler or other institution that has a lien or any security on the producer's crop/grain.
  
  
• Alberta residents applying as a Partnership, Corporation or Cooperative need to have a Notary Public witness the Joint and Several Liability Continuing Guarantee. A separate Guarantee Acknowledgement Certificate is also required for each entity (shareholder).
  
  
• It is a requirement of Agriculture Agri-Food Canada that application and repayment deadlines will be strictly enforced.
  
  
• Producers are required to repay their advances as they sell or otherwise dispose of their grain. Repayment must be made with documentation of sale. Producers who send in cash repayments without documentation of sale will be charged interest at the rate of CIBC prime. 
  

The CCGA offers producers multiple ways to apply for a cash advance, including:

Completed and signed application forms can be submitted by mail or fax at 204-788-0039.

Information on our program can also be obtained by going to Agriculture and Agri-food Canada’s website at www.agr.gc.ca.

No, all defaulted outstanding balances must be paid (regardless of which organization issued the advance) before you can receive a new advance from any APP administrator.

 

CCGA introduced on-line applications in 2009. Once you have completed an on-line application, print it out, obtain all the necessary signatures and mail or fax it to CCGA's office. Please see our Forms section, under the Cash Advance tab for more information.

The production period for a spring crop APP advance begins on April 1st of each year and ends September 30th of the following year. Deadlines for the 2011-12 production period follow below:

Any producer applying jointly, or under a partnership, company, co-operative or corporation (Inc. or Ltd.) name must have all related producers in that corporation sign the Joint and Several Liability Form. In Alberta it must be witnessed by a notary public and accompanied by a Guarantee Acknowledgement Certificate for each entity (shareholder). In all other provinces a witness (must not be a relative) must sign.

In British Columbia, Alberta, Saskatchewan, and Manitoba we offer advances on canola, flax, rye, oats, mustard, canary seed, winter wheat, triticale, buckwheat, and hemp (seed for oil), timothy hay - supreme, premium, choice or standard grades (for export only). For Alberta and Saskatchewan we also offer advances on lentils, kabuli and desi chickpeas, peas, pinto beans, soybeans, white beans, faba beans and other coloured beans. For Non-Designated CWB areas (such as southern British Columbia) we offer advances on non-board wheat, non-board barley and non-board durum.

 

APP advances are processed in three stages. Producers initially receive a cheque equivalent to 60% of the original amount applied for less a 3% withhold and the administration fee. The 60% cheques are sent directly to you, the producer, along with a copy of the application (via Xpresspost).

Once you have finished seeding, you must send a copy of your Confirmed Seeded Acreage Report along with the completed Actual Seeded Pre-Harvest Advance. At that time, you will receive the balance of the pre-harvest funds you are entitled to less a 3% withhold, along with a copy of your Actual Seeded Pre-Harvest Advance Report for your records.

Once you have completed harvest (and no later than December 31st) you must send the complete and signed Post-Harvest Advance. Once processed, you will receive any funds to which you are entitled, less a 3% withhold along with a copy of the final portion of your application.

PLEASE NOTE that all parts of the application must be completed by the deadlines above, regardless of whether or not you will be receiving additional funds.

Producers have the option of using direct deposit through Electronic Fund Transfer; however this option is not available if your lending institution has indicated on your application that they require the cheque to be made out jointly. In order for you to have your advance funds transferred directly into your bank account, an EFT form must be signed as well as having a voided cheque attached. With EFT applications, advance funds are deposited directly into your account and copies of the application form are sent directly to you

 

CCGA withholds 3% of all advance amounts issued in order to meet its obligations to Agriculture and Agri-Food Canada.  The 3% withhold is issued back to the producer (less any outstanding interest charges) upon the full repayment of the advance as required.  In the event that an advance goes into default, the withheld amount is applied against the interest and principal amounts of the advance as specified in the Agricultural Marketing Programs Act.  All interest earned on the withheld amount is used to offset administration costs.

 

Only one administration fee is charged in processing the application, except when a producer uses both Production Insurance and AgriStability as security for the advance. When AgriStability is used in addition to Production Insurance, an additional admin fee of $75.00 will be charged.

 

Advances must be repaid by September 30th of the 18-month production period, as follows:



• On the portion of your crop first sold.  You may not dispose of any part of the crop, in any manner, before disposing of the portion of the crop upon which the advance was received.
  
  
• By selling (or otherwise disposing) of the crop in respect of which the eligible advance is made and paying directly to CCGA for each unit of crop within seven (7) days of receipt of payment or within forty-five (45) days from delivery to the Buyer, whichever is earlier, an amount equal to the Advance Rate in effect at the time of repayment or the final rate of the program the advance was issued under.
  
  
• By selling (or otherwise disposing of) the crop in respect of which the eligible advance is made to an Authorized Buyer, and having them remit on your behalf to CCGA for each unit of crop (within 30 days from delivery) an amount equal to the advance rate multiplied by the net MT delivered.
  
  
• If the Producer chooses to repay in cash an amount in excess of $1000.00 or 10% of the total advance amount (whichever is greater)  without proof of sale of the product, the Producer will be charged interest at the rate of CIBC prime, on the excess amount from the date the advance was issued to the date the repayment was received by CCGA, and the Producer must pay all interest on the cash repayment to CCGA by October 15th of the end of the production period.
  
  
• If the Producer is eligible to receive a payment under a BRM Program which was used as security for this advance by payment directly from that BRM Program payment.
  

**Please note - it is the producer's responsibility to keep track of all repayments and deductions taken on their behalf by any Buyer.  In the event that a producer receives information that a deduction has not been remitted promptly, the producer must notify CCGA immediately, however, the producer will still remain liable to CCGA for repayment of that portion of grain that has been sold.

 

Statements are mailed directly to producers in each of the three months preceding the repayment deadline of each advance program. In addition, producers who set up an on-line account with the CCGA can view their account balances and transactions at any time.