Ottawa – Lawrence MacAulay, Minister of Agriculture and Agri-Food, announced that the interest-free limit of the Advance Payments Program has been set at $250,000 for the 2024 program year. This is the portion of advances on which the Government of Canada pays the interest on behalf of producers.
Canadian producers have faced significant challenges, including elevated input prices and interest rates, which have impacted their cash flow. As farm operating costs remain uncertain heading into the 2024 crop year, this change will save approximately 11,950 participating producers an additional $4,916 in interest costs on average, for a total savings of up to $58.7 million.
The Advance Payments Program gives producers easy access to low-cost cash advances of up to $1 million, based on the expected value of their agricultural product. Under the program, producers normally receive the first $100,000 interest-free. The higher limit announced today will give producers access to additional cash flow and interest savings to help cover costs until they sell their products.
With this support at the start of the production cycle, farmers will be able to purchase important inputs to support production this growing season. The program also provides some marketing flexibility by allowing producers to sell their agricultural products at the most opportune time rather than the need for cash. The Government of Canada remains committed to helping producers manage financial challenges so they can continue driving the economy while feeding Canadians and the world.
“In the face of so many challenges, our hardworking producers continue to show their resilience and produce top-quality products for Canadians, and the world. Increasing the interest-free portion of the Advance Payments Program means improved cash flow and savings for farmers as we head into the 2024 planting season.” – Lawrence MacAulay, Minister of Agriculture and Agri-Food