By Alice McFarlane

Interest-free portion of the Advance Payments Program will increase

Jun 23, 2022 | 11:43 AM

MELFORT, Sask. – The federal government will provide some interest relief for agriculture producers who participate in the Advance Payments Program (APP) to help them have access to cash flow to cover crop-related expenses.

The interest-free portion of the APP will increase from $100,000 to $250,000 for the 2022 and 2023 program years.

The change will mean participating producers will save on average $5,500 in interest costs over the next two years and a savings of up to $61 million over two years for approximately 11,000 producers.

Agriculture and Agri-Food Minister Marie-Claude Bibeau said Canadian producers are facing significant challenges including rising input costs.

“This year, agricultural producers are facing significant increases in input prices,” she said. “By suspending interest on the first $250,000 of their Advance Payments Program loans, we are providing relief to those women and men who work so hard to feed us and the world in these uncertain times.”

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The program is designed to help producers manage their working capital by providing cash advances of up to $1 million against the expected value of their commodities. Through the increase to the interest-free portion, eligible producers will have access to additional cash flow.

The change to the program will make the purchase of inputs like fuel, fertilizer, and seed more affordable for producers to ensure they can maintain production until they are able to sell their products in the fall or winter.

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alice.mcfarlane@pattisonmedia.com

On Twitter: @farmnewsNOW