The Canadian Canola Growers Association (CCGA) is at a record pace in terms of the number of advances issued under the Advance Payments Program, as well as dollars issued.
“What we’ve seen so far is a record year in terms of the number of advances as well as the dollar value of advances,” said David Gallant, director of finance and operations. “On the first day of the program this year, we awarded more than 1,500 farmers over $275 million through the cash advance program.”
According to Gallant, the average advance is up nearly 50% for farmers this year.
He believes that with higher input costs, rising interest rates and continued pressure from weather impacts and supply chain challenges, many farmers will be keen to access the increased benefit. which took effect on June 20.
The interest-free portion of a cash advance has increased from $100,000 to $250,000 for the 2022 and 2023 programs, which Gallant says could save farmers using the program up to $5,500. $ in interest charges over the next two years.
“Margins are shrinking, and anywhere you can cut costs, especially on working capital, that will be valuable,” Gallant said. “$5,500 is not something to sneeze at, so I think it will inspire more and more farmers to consider this type of program to ensure they can maximize the savings they can make. on their working capital needs.
Through the CCGA, farmers can access advances on more than 50 commodities, including crops, livestock and honey. Farmers can apply for a cash advance of up to $250,000 without interest and up to a maximum of $1,000,000. The interest-bearing portion is subject to prime interest less 0.75%.
Farmers considering a cash advance for the first time are encouraged to call CCGA at 1-866-745-2256 to apply over the phone. Existing customers can use the self-service options available from their online account, make a request by phone or download a request form at www.ccga.ca.
The Advance Payments Program is a federal loan program administered by the CCGA. It provides Canadian farmers with marketing flexibility through low-interest, no-interest cash advances.