Canola farmers in Canada will now have access to $500,000 in interest-free loans under the Advanced Payments Program. The changes, effective immediately, are an increase from the original amount of $100,000.
“The implementation of these regulations means that farmers facing cash flow challenges in Canada will now have access to up to $500,000 interest-free for the 2019 program year and up to $1,000,000 total on a permanent basis,” says Rick White, CEO of the Canadian Canola Growers Association (CCGA).
With the increased interest-free limit for canola being in place as of May 29, the organization will be reassessing current CCGA advances and reallocating the interest-free and interest-bearing portions of those advances in a way that maximizes the interest-free benefit available to eligible farmers.
“Time is of the essence, so we’re very glad to see the enacting regulations implemented, which means farmers will soon have access to this expanded program,” says Bernie McClean, president of CCGA. “With uncertainty over markets and farm cash flow being such a big concern this year, we are encouraged by the Minister’s commitment to have the enhanced benefits under the APP being available to farmers beginning June 26, 2019.”
According to a news release, farmers will be able to complete a pre-application anytime between June 10 and June 25, and CCGA will begin issuing advances under the new limits starting June 26.
Farmers have been critical of the move by the federal government to increase a loan limit instead of providing direct support payments over the trade disruption with China that began in January, when the country cancelled the export permit of a major Canadian grain exporting company.