Agricultural producers can now receive $350,000 interestfree with a FarmCash advance
As of May 8, western Canadian producers may receive the first $350,000 interest-free on FarmCash advances of up to $1 million, a $100,000 increase to the interest-free limit for the remainder of the 2023 Advance Payments Program (APP) year. Highly welcomed by producers, the change proposed in Budget 2023 and announced today by Agriculture and
Agri-Food Canada Minister Bibeau is a temporary measure to support producers facing cash flow pressures and increased inflation on fuel, fertilizer and feed over the 2023 growing season.
Today’s announcement comes nearly one year after the Minister announced that the interest-free portion of advances would be temporarily increased from $100,000 to $250,000 until the end of the 2023 program year. Eligible producers could save an additional $3,600 in interest costs on average for the year through the latest additional increase from $250,000 to $350,000.
The additional changes to the APP in recent years are striking a chord with producers and are making onfarm differences to their long-term profitability.
“FarmCash is experiencing tremendous growth and the sheer volume of producers applying reiterates the demand for the Alberta Wheat Commission to provide the program and support western Canada’s agriculture industry in light of increased inflation,” says Greg Sears, Alberta Wheat Commission chair and farmer near Sexsmith, Alberta. “We are pleased to see this additional change to the program that will help ensure producers of all sizes of operations and of a variety of commodities can get their growing season off to the right start.”
As the changes came into effect on May 8, 2023, and the program change is not retroactive, producers are still responsible for paying any interest that has accrued between the day they received the advance and May 7, 2023. Producers who have already applied for a FarmCash advance this program year can expect to hear more details on the change in the coming days.
Producers wanting to apply today for a FarmCash advance can apply online without needing to leave their farm at FarmCashAdvance.com or receive more information by phone by calling 1-855-376-2274. With FarmCash, any advance above the interest-free limit is offered to producers at the lowest lending rates available across APP administrators of TD prime minus 0.75 per cent.
The Advance Payments Program is a federal loan program administered by the Alberta Wheat Commission. It offers Canadian farmers marketing flexibility through interest-free and low interest cash advances.