Important Information for Producers

 
  
 

 Eligibility

 

Any individual producer, who is a Canadian citizen or a permanent resident of Canada and who has reached the age of majority in the province of operation, can apply. Corporations, cooperatives and partnerships are also eligible.

If you or any related producer has an outstanding default on a previous or current crop year advance with any APP administrator, you will be ineligible for an advance under the Agricultural Marketing Programs Act (AMPA). To be eligible for a livestock or animal advance, the stock must already be at foot.

 

 Advance Limits

 

Producers can qualify for up to a maximum of $400,000 with the first $100,000 interest free. The interest free provision and maximum advance is cumulative over all organizations under the Advance Payments Program.

The maximum cumulative advance that can be issued to an applicant, including current outstanding advances (2014 and 2015) and eligible advances for 2015, can at no time exceed $400,000.

 

 Administration Fees

 
CCGA will charge an administration fee for application processing. Fees are as follows:
1. $150.00 for each initial enrolment. If cancellation of the application takes place after an advance has been issued, the administration fee will remain payable to CCGA.
2. $75.00 fee for each subsequent application.
 

 Security

 
​A grain producer must be enrolled in 2015 AgriStability or have valid 2015 crop insurance coverage to be eligible for a pre-harvest advance. Post-harvest advances are secured by the grain in storage. A livestock/animal producer must be enrolled in 2015 AgriStability to be eligible for a livestock/animal advance. Only the producer's livestock may be used as security with the exception of a "default", then the security will become the producer's AgriStability. For animals, the security will be the Producer's AgriStability.
 

 Inspection

 

A field and/or inventory inspection may be required to verify compliance with the AMPA.

 

 Defaults

 

The 2015-16 advance for grain, hogs, goats, sheep or lambs must be repaid on or before September 30, 2016. The 2015-16 cattle or bison advance must be repaid on or before March 31, 2017. Advances for continuous flow cattle and hogs must be repaid within 12 months of the advance issue date. Failure to do so will result in the producer's account being declared in default. If an account is placed into default, the producer will be responsible to pay:

  1. the outstanding amount of the advance;
  2. any interest charges on the outstanding advance calculated from the day the advance was issued until the advance is repaid; and
  3. costs incurred by the Administrator to recover the outstanding advance (a standard rate of 5% will be applied to the outstanding balance as of 45 calendar days after default), interest charges and applicable legal costs.
 

 Production Period

 
​Advances for grain, hogs, goats, sheep and lambs are based on an 18-month program beginning April 1st of each production period. Livestock advances for cattle and bison are based on a 24-month program beginning April 1st of each production period.
 

 Producer Payments

 

Producers applying for an Intended Seeding Advances are eligible to receive 60% of their requested advance upon approval of their application. The remaining 40% will be issued when CCGA receives the producer's Actual Seeded Advance Report and a confirmed Seeded Acreage Report. All recipients of an Intended Seeding Advance must submit this report by July 31, 2015, otherwise the advance becomes due immediately.

Producers applying for a Spring Livestock/Animal Advance must submit a Fall Advance Report by December 31, 2015.

 

 Interest Charges

 

Interest bearing advance accounts will have the interest added monthly and shown on their accounts. The interest rate for interest bearing advances is the CIBC Prime rate, calculated daily and compounded monthly.

Repayments without proof of sale after January 31, 2016 are subject to an interest penalty at the CIBC Prime rate plus 0%.

 

 Repayment

 

The amount producers must repay to CCGA is the total of the advance funds issued, plus the administration fee, plus any interest, if owing. Repayments will first be applied to any default amounts outstanding, then applied to the oldest advance, next against any interest free portion of the advance, and last to any interest bearing portion of an advance.

For grain, livestock, and animal advances (excluding continuous flow livestock), producers are required to repay their advance as the commodity, for which the advance was taken, is sold. Repayment at the advance rate in effect at time of issuance is required within 30 calendar days of receipt of payment or within 60 calendar days of delivery to a buyer, whichever is earlier. The full balance of an advance must be repaid by the end of the production period. 

For advances on crops, proof of sale documentation is not required for repayments made from the beginning of the production period to January 31, 2016, except when requested by the administrator.

 

 Authorized Buyer

 

Upon request of the producer, an authorized grain buyer can submit a repayment directly to CCGA on the producer's behalf. The buyer will require an APP ID number and the name and mailing address associated with the advance account. A list of authorized buyers can be found here.

2015 Authorized Buyers List

 

 Continuous Flow Operations

 
​Continuous Flow Operations are a farming operation where the producer maintains a constant minimum livestock inventory during the advance cycle through the continuous rotation of livestock (i.e. those sold are replaced by new ones within days). Only one 12-month Continuous Flow Operation cycle is allowed per production period.