Is COVID-19 making you question the right time to sell your products? Farming can be unpredictable at the best of times. From planting to harvest, unexpected costs can disrupt your plans. Prices rise and fall, and the market is constantly changing. This uncertainty can make selling your products for a profit, while managing your finances, challenging. However, the Advance Payments Program (APP), can help give you the flexibility to sell when market conditions are favourable.
The APP is a federal loan guarantee program that offers low interest cash advances. In 2019, APP provided just over $3 billion in cash advances to more than 21,000 participating producers.
Advances from the APP are determined based on the market value of a crop or livestock product. The APP can provide loans worth up to 50 percent of the expected average market price of your agricultural product.
Applicants can receive:
- up to $1 million in advances
- interest-free advances of up to $100,000
Advances are available for more than 500 crop and livestock products, and mixed farms can apply for advances on multiple commodities. Repayment terms range from 18 to 24 months with the flexibility for you to repay your advances as you sell your product.
Visit the Advance Payments Program for more information on how you can benefit from this program.
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