Posted June 23, 2022
Effective as of June 20, 2022, agricultural producers who apply for the Advance Payments Program (APP) through FarmCash are now eligible to receive the first $250,000 of their advance interest-free. This change to the interest-free portion, announced today by the Minister of Agriculture and Agri-Food Canada (AAFC), the Honourable Marie-Claude Bibeau, provides additional support to Canadian agricultural producers affected by high input costs and the lingering impact of the 2021 drought.
Today’s announcement, affecting the 2022 and 2023 program years, is one of a series of recent temporary measures announced by the Government of Canada in response to all-time high commodity input expenses and cash flow shortages.
AAFC’s previous announcements of increased advance rates and eligibility for producers to receive the entirety of their advance upfront upon the approval of their application, have been as welcomed as the recent rain on parched soils.
“Producers’ cash flow has been hit hard over the last year by the widespread drought conditions and now the rising costs of fuel, seed, and in crop management,” says Alberta Wheat Commission chair Greg Sears. “Canadian producers are proud to step up and support the national and global food supply, but we need the business risk management tools in place to be able to do what we do best, the cost savings instilled by this change will ensure we are set up for success.”
Producers who have applied to FarmCash for a cash advance beginning June 20, 2022, can expect to hear more details directly from their account manager in the coming days.
“We are proud to support the announcement made by AAFC that will ease the financial challenges producers are facing while improving the long-term profitability of their farming operations,” says chief operating officer of FarmCash, Syeda Khurram. “Our goal has always been to support producers and take the guesswork out of the program so they can have quick and painless access to cash flow when needed.”
“Farmers have been avoidant to use cash advance programs in the past simply because of the stress, simply put, FarmCash has become the fastest-growing cash advance program in Western Canada because of the superior customer service,” says Sears.
Under the administration of FarmCash by the Alberta Wheat Commission, producers of over 50 agricultural commodities across Western Canada can apply for an advance of up to $1 million. Under today’s change, the interest-free portion has been increased from $100,000 to $250,000 with the remainder at TD prime minus 0.75 percent. Producers can apply online without needing to leave their farm and have access to funds within three to five business days.
For more information and to apply for FarmCash visit FarmCashAdvance.com or speak with a dedicated account manager by calling 1-855-376-2274.
The Advance Payments Program is a federal loan program administered by the Alberta Wheat Commission. It offers Canadian farmers marketing flexibility through interest-free and low interest cash advances.
For more information, please contact:
FarmCash Chief Operating Officer
For media inquiries, please contact:
Marketing Communications Coordinator
Alberta Wheat and Barley Commissions