Agriculture Minister Gerry Ritz has announced a Stay of Default for the 2013-14 Advance Payments Program (APP) affecting grain farmers in Western Canada. The Stay extends the current repayment deadline of September 30, 2014 to March 31, 2015 for cash advances issued by the Canadian Canola Growers Association (CCGA).
“Many farmers have faced challenges selling their 2013 crops and for these farmers meeting a September 30th repayment deadline is almost impossible,” says Brett Halstead, president of CCGA. “This deadline extension is greatly appreciated by farmers and will lessen the financial worries that many are facing with grain still being held in their bins waiting for a marketing opportunity to open up and many facing excess moisture problems at the same time.”
The Stay of Default announcement includes several other important conditions, including:
- Farmers will be allowed to make a cash repayment on their 2013-14 advance without facing a payment without proof of sale penalty;
- The interest-free component of the advance will be maintained throughout the six month extension; and
- The Stay will apply equally to all crops under CCGA’s administration.
While the conditions of the Stay of Default come into effect immediately, all other existing rules and guidelines associated with the 2013-14 APP continue to apply. CCGA reminds farmers that repayments on existing advances must be made every time a farmer sells grain that is associated with their advance.