Federal Agriculture Minister Marie-Claude Bibeau announced Monday that the government has implemented the new regulations aimed to strengthen the Advance Payments Program (APP).

The amendments, announced at the start of May, increase loan limits from $400,000 to $1 million for all producers on a permanent basis, and increase the interest-free portion of loans on canola advances from $100,000 to $500,000 in the 2019 program year.

“Our Government stands behind our farmers and is taking numerous concrete actions to help them manage the current market disruption challenges," said Bibeau. "These measures will help ensure our hardworking Canadian producers have the flexibility they need to manage their cash flow.”

Producers of all other commodities can continue to receive up to $100,000 interest-free.

“We thank Minister Bibeau for her efforts to bring the regulations into force on May 29, and for having the increased limits under the APP available to farmers beginning June 26, 2019,” says Bernie McClean, President of Canadian Canola Growers Association (CCGA). “Time is of the essence, with uncertainty over markets and farm cash flow being such a big concern for farmers this year.”

Farmers will be able to apply for the new amounts as early as June 10 and new advances above $400,000 will be issued as of June 26.

Government officials are working with the 36 program administrators to revise contracts and operating procedures.

In the meantime, producers continue to have access to the current advance limit of $400,000, which effective immediately, is interest-free for all canola advances.

 

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