Winnipeg, MB — Yesterday, the Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, announced temporary changes to the Advance Payments Program (APP), which will give grain farmers access to 100% of their eligible 2022 cash advance funds at the beginning of this growing season.
“This temporary change provides farmers with access to 100% of their eligible intended seeded advance when they first apply," says Dave Gallant, Director of Finance and Operations at CCGA. “Normally, for an intended seeded advance, farmers receive 60% of their eligible advance when it is first approved, and the remaining 40% is issued after the crop has been planted."
Farmers are experiencing increased costs for inputs such as fertilizer and fuel this growing season and, with disappointing yields after last year's drought, farm cash flow may be limited. Providing more advance funds earlier in the program cycle can provide support to farmers working diligently to get their crops planted this spring.
“While this announcement was unexpected, we are working with the APP team at Agriculture and Agri-Food Canada to implement these program changes as quickly as possible," says Rick White, President & CEO of CCGA. “At CCGA we anticipate more than 2,500 farmers will be impacted by the change, and we will begin contacting those impacted immediately."
The Advance Payments Program is a federal loan program administered by CCGA. It offers Canadian farmers marketing flexibility through interest-free and low-interest cash advances.
Canadian Canola Growers Association (CCGA) represents canola farmers on national and international issues, policies and programs that impact farm profitability, and has been administrator of the Government of Canada's Advance Payments Program since 1984. For more information visit www.ccga.ca or follow CCGA on Twitter @ccga_ca.