Canadian Canola Growers Association

What's New for Cash Advances?

​​​​​​​​​​​​​​​​​​​​​​​​​​​​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 chang​es that may impact your cash advance for existing and prior program years.

​Changes Implemented in 2021

Administrator changes ​made by CCGA:

  • Interest rate on interest​-bearing advances continues at the low rate of prime less 0.75%.

  • No administration fee for the second year in a row.

  • Digital signatures now accepted when applying through our online secure site (does not include third-party forms).
  • Commissioner of oaths no longer required for producers using AgriStability.

APP rule changes made by AAFC:

No changes this year.​​​​

​Changes Implemented in 2020

​Administrator changes ​made by CCGA:

  • Administration fee eliminated.

  • Interest rate on interest-bearing advances reduced to prime less 0.75%.

APP rule changes made by AAFC:

  1. Removing commodities mid-advance is no longer permissible.
    Existing advance holders can no longer remove commodities from an advance when completing a post-harvest report, unless those commodities are damaged and unmarketable. Adding commodities at the time of completing a post-harvest report is still allowed.

  2. Definition clarification: financial collateral for alternate guarantor.
    If an alternate guarantor is used to secure an​​​ advance, that guarantor must provide proof they have the financial collateral to guarantee the advance until it is fully repaid. For the APP, financial collateral is defined as cash, securities, guaranteed income certificates (GICs), mutual funds, bonds and stocks.

  3. Proof of sale penalty changes.
    Penalty interest rates have changed for repayments made after the proof of sale deadline or in cases where appropriate proof of sale is not provided. Refer to Terms and Conditions of the APP Application and Repayment Agreement for 2020/21. Page 34, section 6.1.

Changes Implemented in 2019

Administrator changes made by CCGA:

  • Interest rate on interest-bearing advances reduced to prime less 0.50%.

APP rule changes made by AAFC:

  1. Revised ineligibility periods. 
    The ineligibility periods for producers who go into default have been revised. Defaulted producers could face an ineligibility period. If a defaulted advance is repaid in full within 6 months of being declared in default, there will be no ineligibility period. However, if a defaulted advanced is paid in full after 6 months has passed since the advance was declared in default, the applicant will be ineligible to apply for another advance for one year. Details on additional ineligibility periods for repeat defaults can be found in ​Terms and Conditions of the APP Application and Repayment Agreement for 2020/21. Page 33, section 5.6.

  2. Basis contract repayment terms extended:​
    Where a producer enters into a basis contract, the repayment deadlines are changed to 30 days of receipt of payment or 90 days from the date of delivery of the product, whichever is sooner. Producers who do not use basis contracts will continue to have repayment deadlines of 30 days of receipt of payment or 60 days from the delivery date.​