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Advance Payments Program: Step 1. What this program offers

Government of Canada announces Stay of Default for eligible farmers

Eligible farmers who have an outstanding Advance Payments Program (APP) loan due on or before April 30, 2020, will receive a Stay of Default, allowing them an additional six months to repay the loan. The new deadlines for outstanding Advance Payments Program loans are:

  • September 30, 2020: 2018 cash advances for grains, oilseeds, and pulses
  • September 30, 2020: 2018 cash advances for cattle and bison
  • October 31, 2020: 2019 cash advances on flowers and potted plants

Administrators participating in the Stay of Default are:

  • Agricultural Credit Corporation
  • Alberta Sugar Beet Growers
  • Alberta Wheat Commission
  • BC Breeder and Feeder Association
  • Canadian Canola Growers Association
  • Manitoba Crop Alliance (formerly Manitoba Corn Growers Association Inc.)
  • Manitoba Livestock Cash Advance Inc.
  • PEI Federation of Agriculture
  • Western Cash Advance Program Inc.

Learn more:
Prime Minister announces support for farmers and agri-food businesses under Canada’s response to COVID-19

Fact sheet

Print this fact sheet for use at events and meetings to promote the program.

Step 1. What this program offers

The Advance Payments Program (APP) is a federal loan guarantee program which provides agricultural producers with easy access to low-interest cash advances.

Under the program, you can access up to $1,000,000 per program year in total advances based on the value of your eligible agricultural products, with the Government of Canada paying the interest on the first $100,000 of your advance. Advances are repaid as you sell your agricultural products, with up to 18 months to fully repay the advance for most commodities (up to 24 months for cattle and bison).

APP advances can provide you with cash flow to meet your financial needs until you are able to sell your agricultural products. The program can provide marketing flexibility so you can make the decision to sell your agricultural products based on market conditions rather than the need for cash to meet your immediate financial obligations.

APP advances are available through 33 participating producer organizations, that is, APP Administrators, across Canada.

How much you can receive

Under the APP, you may be eligible to receive up to $1,000,000 per program year, with:

Your cash advance is calculated based on up to 50% of the anticipated market value of the eligible agricultural products that you will produce or have in storage. You cannot have more than $1,000,000 in advances outstanding at any one time.

What you 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 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.

Agriculture and Agri-Food Canada’s role in the APP

In addition to providing a financial guarantee on advances issued and paying the interest on the first $100,000 advanced to each producer per program year, Agriculture and Agri-Food Canada (AAFC)’s Financial Guarantee Programs Division (FGPD) is responsible for providing federal oversight by working together with APP Administrators to ensure that the program is administered in a manner that:

  • reduces costs to producers and use of public funds
  • is focused on providing benefit to Canadian producers
  • respects the annual Advance Guarantee Agreements, Program Guidelines, the Agricultural Marketing Programs Act and its Regulations
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