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Every year, thousands of Canadian farmers meet their fall cash flow needs through an Advance Payments Program cash advance from Canadian Canola Growers Association (CCGA). A cash advance provides farmers with access to low-interest financing through their unsold crop and livestock inventory.
“With an interest rate 0.25% below prime and the first $250,000 interest-free, a cash advance is a smart decision for farmers looking at fall financing options,” says Dave Gallant, Vice-President, Finance & APP Operations at CCGA.
“An advance also has the flexibility to be used in whatever way works best for your farm: fall inputs, livestock feed, repairs and maintenance, wages, and more. If you don’t already have a 2024 advance, it’s definitely worth a second look.”
What are five ways farmers put a fall cash advance to work on their farm?
1. Get cash flow to pay harvest and fall expenses without selling your crop or livestock inventory off-combine or pasture. Harvest is often when prices can hit a low point. A cash advance gives you more time to build and execute your marketing plan while providing cash flow to cover your operating expenses.
2. Generate cash flow from contracted grain that’s not yet sold. Farmers with grain contracted for delivery at a future date can use their contracted inventory to obtain a cash advance, as long as the grain remains in their possession. The advance is repaid when the grain is sold.
3. Reduce operating costs through lower interest rate financing. The combined benefits from the interest-free and interest-bearing portions of a cash advance can save farms from $15,000 to $30,000 per year in financing costs, depending on comparative interest rates and the amount of the advance.
4. Pre-purchase spring inputs for next growing season. Product availability or pricing trends may have you looking to pre-purchase your seed, fertilizer, or even fuel for the 2025 growing season. A cash advance provides the cash flow to make those purchases now.
5. Pay for unexpected repairs or necessary improvements. Sometimes harvest comes with unanticipated expenses. A cash advance can finance those expenses, or pay for planned improvements you want to tackle now.
CCGA has been serving farmers’ cash advance needs for four decades, offering advances on 50+ commodities including field crops, large and small livestock, organic commodities, and honey.
And if you’re just starting to farm, no problem! You can apply as long as you own, store, and sell your inventory separately from others.
CCGA’s team makes it easier to learn more and apply. Call us at 1.866.745.2256 or visit ccga.ca. Returning customers can apply online.
The Advance Payments Program is a federal loan program administered by Canadian Canola Growers Association. It offers Canadian farmers marketing flexibility through interest-free and low-interest cash advances.
