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. To be eligible for a livestock advance, the stock must already be at foot.

If you or any related producer has an outstanding default on a previous or current production period advance with any APP administrator, you will be ineligible for an advance under the Agricultural Marketing Programs Act  (AMPA).

 

 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 Advance Payments Program Administrators.

The maximum cumulative advance that can be issued to an applicant, including current outstanding advances (2015 and 2016) and eligible advances for 2016, 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 2016 AgriStability or have valid 2016 crop insurance coverage to be eligible for a pre-harvest advance. Post-harvest advances are secured by the crop in storage. Honey and livestock producers must be enrolled in 2016 AgriStability to be eligible for an advance. The deadline to apply for AgriStability is April 30th of each year. AgriStability enrolment fees must be paid in full to be allowable as security for an advance.
 

 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 field crops, honey, hogs, goats, sheep and lambs are based on an 18-month program beginning April 1st of each year. Livestock advances for cattle and bison are based on a 24-month program beginning April 1st of each year.
 

 Funds Issued to Producer

 

Producers applying for an Intended Seeding or Intended Honey Advance 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 for crops, a confirmed Seeded Acreage Report/Statement of Crop Insurance and Invoice. All recipients of an Intended Seeding Advance must submit this report by July 31, 2016, otherwise the advance becomes due immediately.

Producers applying for a Spring Advance, whether crops, honey or livestock, must submit a Post Harvest/Fall Advance Report or have their account repaid in full by December 31, 2016.

 

 Interest Charges

 

Interest bearing advances are subject to interest at the CIBC Prime Rate (calculated daily and compounded monthly), which is calculated and applied to accounts on at least a monthly basis.

Repayments without proof of sale, as described in the Terms and Conditions, are subject to an interest penalty at the CIBC Prime rate.

 

 Repayment

 

The total of advance funds issued, plus the administration fee and applicable interest, constitute the amount required to be repaid to CCGA. On an individual advance basis, repayments are applied as follows:

  1. Interest-free principal portion of advance (if applicable);
  2. Interest charges applied (if applicable);
  3. Interest-bearing principal portion of advance (if applicable).

When multiple advances are outstanding, repayments are first applied to defaulted accounts (if applicable) and then applied on the basis of "oldest advance first".

For repayment requirements and proof of sale information, click here.

 

 Authorized Buyer

 

The grain buyers list found below have agreed, upon request from a producer, to remit deductions within 30 calendar days to CCGA for repayment toward an outstanding advance account. The Buyer will require the following account-specific information: name, mailing address, and APP ID Number. 

2016 Authorized Buyers List

For honey, the authorized buyer is the honey cooperative.

 

 Continuous Flow Operations

 
​A Continuous Flow Operation is 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 year.