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Advance Payments Program to increase spring cash flow to producers

April 18, 2022  By Agriculture and Agri-Food Canada

On April 6, Marie-Claude Bibeau, minister of agriculture and agri-food, announced a change to the Advance Payments Program that will increase cash flow to producers this spring to help with high input costs caused by drought-related feed shortages, pandemic disruptions and the war in Ukraine.

There will be a temporary waiving of the requirement for pre-production advances to be issued in two instalments: 60 per cent upfront and 40 per cent after seeding is confirmed. This change will allow producers to receive 100 per cent of their 2022 advance immediately when they apply.

“Canada’s agricultural producers are facing an increase in the cost of raw materials, including fuel and fertilizer, a situation exacerbated by Russia’s invasion of Ukraine,” Bibeau said. “In these uncertain times, it is more important than ever that our farmers are able to maximize their production to feed Canadians and the world.


“This temporary change to the Advance Payments Program comes in time for the planting season and will help farmers purchase the inputs needed for sustainable food production.”

Under the Advance Payments Program, producers are provided with easy access to affordable credit through cash advances of up to $1 million based on the expected value of their agricultural product, of which the first $100,000 in each crop year is interest-free. Access to additional cash flow at the start of the production cycle will ensure farmers can purchase important inputs such as fuel, fertilizer and seed, in order to maintain full production this growing season.

Given the significant increase to input costs, in December 2021 Farm Credit Canada proactively offered credit limit increases of 30 per cent for crop input financing to customers that met specific pre-approval criteria, ensuring they have access to the capital they need for the upcoming growing season.


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