Feds improve access to cash advances for producers
By Top Crop Manager
Feb. 5, 2016 - Agriculture and Agri-Food Minister Lawrence MacAulay confirmed today that new regulations are now in place that simplify access to cash advances under the Advance Payments Program (APP) and make the program more flexible for farmers. The regulatory changes were made possible as a result of amendments made to the Agricultural Marketing Programs Act in February 2015.
The regulatory changes, in place for the 2016 program year, allow for several new improvements, which include:
- New commodities now qualify for advances under the program, including specific classes of breeding cattle, hog, sheep, and goats intended for market.
- Producers can now use more types of security to obtain an advance such as private or other types of insurance.
- A new streamlined application process reduces paper burden for returning clients.
- Simplified access for companies with multiple shareholders.
The Advance Payments Program is a federal loan guarantee initiative that helps agricultural producers benefit from the best market conditions by improving their cash flow throughout the year. Farmers can access advances of up to $400,000 from more than 45 commodity groups across Canada.
Across Canada, approximately $2 billion in advances are provided to over 20,000 producers each year.