Federal government adjusts Advance Payments Program
Ottawa: Exceptional circumstances such as feed shortages due to drought and delays stemming from the global pandemic and the war in Ukraine have disrupted supply chains and increased input costs for Canadian farmers, including for fuel and fertilizer. In these challenging times, it is important that farmers have the support they need to ensure a successful 2022 planting season.
Today, the Minister of Agriculture and Agri-Food, Marie-Claude Bibeau, announced a change to the Advance Payments Program that will increase cash flow to producers this spring to help with these high input costs. There will be a temporary waiving of the requirement for pre-production advances to be issued in two installments, 60 per cent upfront and 40 per cent after seeding is confirmed. This change will allow producers to receive 100 per cent of their 2022 advance immediately when they apply.
Under the Advance Payments Program, producers are provided with easy access to affordable credit through cash advances of up to $1 million based on the expected value of their agricultural product, of which the first $100,000 in each crop year is interest free. Access to additional cash flow at the start of the production cycle will ensure farmers can purchase important inputs such as fuel, fertilizer and seed, in order to maintain full production this growing season. Pressure on world food supplies continues to increase due to the conflict in Ukraine. Canada is prepared to help fill the gap in world production.
