Government of Canada announces major change to the Advance Payments Program, agricultural producers can now receive their entire FarmCash advance upfront
The Government of Canada announced another temporary change to the Advance Payments Program (APP) that provides additional support for western Canadian agricultural producers experiencing cash flow difficulties in the wake of record-high input prices and last year’s drought conditions. Today’s announcement unveils that producers are now eligible to receive the entirety of their advance upfront upon the approval of their application. In previous program years, crop and honey producers received 60 per cent of their requested advance upfront and the additional 40 per cent upon the submission of additional reporting that verified seeded acreage or production.
This latest change to the APP program, combined with last week’s announcement of increased advance rates, allows producers to access substantial cash flow and use their increased purchasing power to help maximize profitability on commodities experiencing all-time high market prices.
“The change announced today is welcomed by producers struggling with their cash flow this season,” says Alberta Wheat Commission chair Greg Sears. “The APP has a deep-rooted history in helping producers stay ahead of the curve, but we have seen that agriculture is susceptible to the flux of markets and global events. In these unprecedented times, changes to business risk management programs are necessary to help producers and industry weather the challenges.”
For producers that have already applied to FarmCash and received partial funds, the remainder of their advances will be issued within twenty-four hours of the APP announcement.
“We are committed to helping producers improve their profitability, and we could not be more supportive of the announcement made by the Government of Canada and Agriculture and Agri-Food Canada,” said chief operating officer of FarmCash, Syeda Khurram. “FarmCash is proud to provide producers with a convenient and efficient cash advance option to overcome current and future challenges in the industry.”
Under the administration of FarmCash, producers in Western Canada of over 50 agricultural commodities from cattle to canola can apply via an easy online application for a cash advance of up to $1 million and receive their first $100,000 interest free and the remainder at TD prime minus 0.75 per cent. The use of the program is not limited to the purchasing of inputs, but can also be used to mitigate risk in the growing season, make timely investments, or even improve farmland value.
For more information and to apply for FarmCash visit FarmCashAdvance.com or speak with a dedicated account manager by calling 1-855-376-2274.
The Advance Payments Program is a federal loan program administered by the Alberta Wheat Commission. It offers Canadian farmers marketing flexibility through interest-free and low interest cash advances.
For more information, please contact:
FarmCash Chief Operating Officer
For media inquiries, please contact:
Marketing Communications Coordinator
Alberta Wheat and Barley Commissions