Advance Payments Program

The Advance Payments Program (APP) is a financial loan guarantee program that gives producers easier access to credit through cash advances.

This means improved cash flow throughout the year and better opportunities for marketing their agricultural products.

A number of producer organizations across the country are delivering cash advances under the APP. These producer organizations are listed along with the list of agricultural products on which they are offering cash advances at the following link: Participating Producer Organizations. As new producer organizations are ready to deliver the program, they will be listed on the APP Web site.

The Advance Payments Program (APP) provides producers with a cash advance on the value of their agricultural products during a specified period. By improving their cash flow throughout the year, the APP helps crop and livestock producers meet their financial obligations and benefit from the best market conditions.

Under the APP, the federal government guarantees repayment of cash advances issued to farmers by the producer organization. These guarantees help the producer organization borrow money from financial institutions at lower interest rates and issue producers a cash advance on the anticipated value of their farm product that is being produced and/or that is in storage.

Objectives

Give producers easier access to credit through cash advances.

Available Funding

The cash advance rate cannot exceed 50% of the average market price that the Minister estimates will be payable to producers of the agricultural product in that area. The maximum cash advance available to each producer is $400,000. The federal government pays the interest on the first $100,000 of a cash advance issued to a producer per production period and producers have up until the end of the production period to repay their advance.

Program Delivery

The APP is accessed through producer organizations that administer the program through an agreement with Agriculture and Agri-Food Canada (AAFC) and a designated lending institution. There is a list of Participating Producer Organizations on this Web site.

Producer organisations deliver the APP on behalf of Agriculture and Agri-Food Canada (AAFC). Producers can apply for a cash advance from a producer organization - not directly from AAFC. Please refer to the list of Participating Producer Organizations on this Web site to locate a producer organization near you that offers cash advances.

Administrative Guidelines

Agriculture and Agri-Food Canada has developed administration guidelines to assist producer organizations in administering the Advance Payments Program, as well as to clearly outline to them what is necessary for producers to participate in the program.

Act
On February 25 2008, the Minister of Agriculture and Agri-Food introduced amendments to the Agricultural Marketing Programs Act which provide producers with easier access to cash flow under the program. On February 28 2008, the amendments received Royal Assent.

Contact Information

For more information, you can contact a Participating Producer Organization or the Agriculture and Agri-Food Canada Financial Guarantee Programs Division at the following coordinates.

1341 Baseline Road, Tower 7, 7th Floor
Ottawa, ON
K1A 0C5

Email: fgp-pgf@agr.gc.ca
Toll Free Number: 1-888-346-2511
TDD/TTY: 613-773-2600