Advance Payments Program - 2. How much can I receive?
2. How much can I receive?
Under the Advance Payments Program (APP), you may be eligible to receive up to $400,000 per program year, with:
- the federal government paying the interest on the first $100,000 per program year; and
- preferential interest rates on advance amounts over $100,000.
Your cash advance is calculated based on up to 50% of the anticipated value of the eligible agricultural products that you are producing or have in storage. You cannot have more than $400,000 in advances outstanding at any one time.
What do I need as security for an advance?
Your advance must be secured. The security required will depend on the type and state of the agricultural product at the time you apply.
- The agricultural product on which the advance is based is always required as security.
- For advances on agricultural products that are in production or are non-storable and for advances on animals or animal products, additional security is required. This includes one or more of the potential proceeds from a relevant business risk management program (AgriInsurance, AgriStability or Farm Income Stabilization Insurance [ASRA] in Quebec) and/or another acceptable form of security.
The advance amount you are eligible to receive will be limited by the level of security you are able to provide.
If you are declared in default, the security, including assigned program payments, may be used to pay off your advance.
For more information on acceptable forms of security, you should contact your Advance Payment Program Administrators.
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