Uncertainties in weather, disrupted supply chains and increased farm input costs can cause wide swings in farm income for hardworking farmers. Cash flow is essential for you to manage your operating costs.
The Advance Payments Program (APP) is a federal loan guarantee program that offers producers access to low-interest cash advances of up to $1 million to help provide marketing flexibility, so you can sell your products at the most opportune times. Advances are available on more than 500 crop and livestock products across Canada.
Given the existing challenges facing the agriculture sector, the Government of Canada has made important changes to this program:
- The first $250K is interest free
- The interest-free limit is temporarily increased from $100,000 to $250,000 – for the 2022 and 2023 program years.
- Receive 100% of your 2022 advance upfront when you apply
- The requirement for pre-production advances to be issued in two instalments is temporarily being waved.
- If you are currently subscribed to the APP, contact your administrator to request the remaining 40% of your advance now.
Farmers experiencing financial challenges are encouraged to access assistance available under the Canadian Agricultural Partnership's suite of business risk management (BRM) programs to help you manage those risks.
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