The beginning of each program year often brings changes to the Advance Payments Program (APP) that can affect how you best manage your advance. Some changes result from APP rule changes or clarifications that are made by Agriculture and Agri-Food Canada (AAFC). Other changes that affect your cash advance are administrative and implemented by CCGA. Below is a summary of changes that may impact your cash advance for existing and prior program years.
Changes Implemented in 2023
Administrator changes made by CCGA:
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Interest rate on interest-bearing advances continues at the low rate of prime less 0.75%.
No administration fee continues.
Improved ability to
upload documents into your online account, including priority agreements, 3rd party forms, and proof of sale.
APP rule changes made by AAFC:
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Temporary increase to $350,000 interest-free portion in 2023.
Farmers can receive up to $350,000 interest-free in 2023, effective May 8, 2023. Read our press release:
Cash advances see boost to interest‑free limit for 2023
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Return to 60/40 split issuance for spring grain advances.
Once approved, farmers will be issued 60% of an advance for intended seeding, and the remaining 40% after seeding is complete.
Changes Implemented in 2022
Administrator changes made by CCGA:
APP rule changes made by AAFC:
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Temporary Increase to Interest-Free Benefit (effective June 20, 2022)
For the 2022 and 2023 program years, farmers will receive up to
$250,000 interest-free, an increase from $100,000.
Read our press release
CCGA preparing to implement enhanced interest-free benefit for cash advances. - Simplification of Repayment Timelines (effective November 2021)
Repayments are required within
30 calendar days from the date a farmer receives payment for a commodity listed on their advance. Keep in mind that all advances must be repaid by the last date of the Production Period.
This change applies to APP cash advances issued in the 2021-22 program year, as well as advances issued since that time. -
Reductions for Interest Penalty Calculations (effective November 2021)
When a repayment is late (beyond the 30 days mentioned above), the interest penalty will now be calculated based on the number of days that the payment was late, rather than being calculated on the total number of days that the advance was outstanding. (Only applicable when all other Proof of Sale requirements are fulfilled.)
This change applies to APP cash advances issued in the 2021-22 program year, as well as advances issued since that time.