Posted April 1, 2022
Producers in British Columbia, Alberta, Saskatchewan and Manitoba that have applied for FarmCash can begin improving the long-term profitability of their farming operation starting today, April 1, 2022. While applications for FarmCash opened on March 1, 2022, today marks the official launch date of the Advance Payments Program year, allowing the release of funds to western Canadian producers of over 50 agricultural commodities from wheat and canola to livestock and honey. Starting today, producers can also take advantage of new advance rates that provide them with greater lending power than ever before.
With the change in commodity rates, producers of small and mid-sized operations have the ability to make larger investments and substantially improve their farm’s profitability.
“We are excited to begin issuing funds to producers for this new program year, and on top of that, to let them know that they can take advantage of new advance rates,” says chief operating officer of FarmCash, Syeda Khurram. Previously, a canola producer in Saskatchewan was eligible for an advance of $504,400 on 2,000 tonnes, but now, that same producer qualifies for an advance of $727,500; an increase in lending power of $223,100.”
With advances of up to $1 million, producers can utilize FarmCash as a business risk and cash flow management tool to purchase inputs, mitigate risk from weather or unexpected vet bills, provide marketing flexibility, or make other timely investments for their farm. Producers receive their first $100,000 interest free and the remainder at the lowest borrowing rate available of TD prime minus 0.75 per cent.
The new advance rates are a welcome change from producers recovering from a challenging growing season and other stresses on the agriculture industry, including record-high costs of inputs such as fertilizer.
“It is great to see the Government of Canada and Agriculture and Agri-Food Canada helping producers improve their profitability with new advance rates,” says Alberta Wheat Commission chair Greg Sears. “Many producers in the Prairies have had their cash flow affected due to lower yields in 2021 and now higher input costs, so the ability to make larger investments that can maximize yield, and in turn profits, can make a substantial difference for individual producers and collectively for global supply.”
While paper applications are accepted, producers can also apply for a FarmCash advance without leaving their farm via an easy online application and receive their funds within three to five business days.
Producers are encouraged to view the new commodity rates at FarmCashAdvance.com or speak with a dedicated account manager by calling 1-855-376-2274. To hear from producers across Western Canada that use FarmCash, watch the new video, Take Advantage of a Growing Opportunity.
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