A cash advance can benefit both new and experienced farmersJune 24, 2016Hub EditorialWhether you're just starting out in farming or have established operations, a cash advance can unlock the growth potential of your farm. In this short series, Dave Gallant, CCGA's Director of Operations, sits down with us to talk about why farmers should choose a cash advance, highlighting how using an advance as part of your overall financing plan can help unlock the growth potential of your farm.In this video, Dave talks about how a cash advance benefits both experienced farmers and farmers just starting out in different, meaningful ways. How does a cash advance benefit experienced farmers?While an established farmer with larger operations may not need to borrow money, they can still use the Advance Payments Program to their benefit.Regardless of farm size or experience, a cash advance provides cash flow benefits for your farm at a low interest rate. It could mean interest cost savings of several thousand dollars per year. For established farmers, a cash advance can also unlock opportunity to take advantage of special savings on crop inputs, such as seed or fertilizer. The additional money also allows them to sell their commodity, whether it be grain or livestock, when the price is highest. This can have a significant impact on your bottom line.How does a cash advance benefit farmers just starting out?Farmers just starting out can benefit from a cash advance in three major ways:With a low interest rate, young farmers can save money on their financing costs.It provides them marketing flexibility, giving them the ability to sell their commodity when the time and price is most competitive.The equity advantage is key. A young farmer's farm equipment or land is not tied up when taking out a cash advance, the collateral is the commodity they take the advance out on.To view the previous video in this series, on the overall benefits of a cash advance and recent changes to the program, click here.For detailed information on how the Advance Payments Program works, visit our Why a Cash Advance? page or check out our cash advance online infographic.