Ontario extends repayment deadline for commodity loan program

The Ontario government has announced changes to the Commodity Loan Guarantee Program (CLGP) to help farmers affected by abnormally high levels of deoxynivalenol (DON) in the 2018 corn crop.

The CLGP provides access to short-term operating loans for the purchase of crop input supplies, such as seed, fertilizer, and pesticides. It is administered on behalf of the province by the Agricultural Credit Corporation (ACC).

On a pilot basis, the repayment deadline is being extended from February 28 to September 30 for the 2018 and 2019 program years,. The government is also increasing the maximum guaranteed loan limit under the CLGP from $120 million to $200 million for the 2019 and 2020 program years, on a pilot basis.

“With these changes, our government is addressing farmers’ concerns and helping them deal with losses beyond their control,” says Ontario Minister of Agriculture, Food and Rural Affairs Ernie Hardeman.

These program updates will provide more flexibility to repay loans under the loan guarantee program, the government says,  saving time, reducing burden and relieving stress so farmers can focus on growing their businesses.

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