Repayment deadline for 2018 APP Cash Advances extended six months

On March 23, Agriculture and Agri-Food Minister Marie-Claude Bibeau approved a Stay of Default for the 2018 Advance Payments Program (APP) affecting farmers with cash advances on field crops, cattle and bison.

The announcement includes a 6-month extension of the 2018 Stay of Default for grain, oilseed and pulse crops; introduces a new six-month Stay of Default for 2018 cattle and bison advances; and extends the current repayment deadline to September 30, 2020, for cash advances issued by Canadian Canola Growers Association (CCGA) and other APP administrators.

The Advance Payments Program is a federal loan program administered by CCGA.

It offers Canadian farmers marketing flexibility through interest-free and low interest cash advances.

“So many factors have impacted farmers’ marketing plans this year,” says Rick White, President & CEO of CCGA. “COVID-19, international trade disruptions, poor weather and rail disruptions have made it difficult for many farmers to repay their advances.”

A Stay of Default means that farmers who have an outstanding 2018 cash advance now have an additional six months to repay their advance. Details of the Stay of Default include:

1. The Stay comes into effect on March 23, 2020;

2. The end of the production period for 2018 eligible advances will be extended from March 31, 2020 to September 30, 2020;

3. The interest-free benefit will be maintained throughout the six-month extension;

4. Farmers who are eligible for the Stay will be able to make a cash repayment on their 2018 advance without providing proof of sale documentation or facing cash repayment penalties.

“These are unprecedented times in Canadian agriculture, and we are pleased Minister Bibeau has responded with additional support to help farmers through this difficult time,” says White.

“We look forward to working with Agriculture and Agri-Food Canada to implement these changes immediately.”

While the conditions of the Stay of Default come into effect today, all other existing terms and conditions associated with the 2018 APP remain in effect. CCGA reminds farmers that repayments on existing advances must be made every time a farmer sells a commodity that is associated with their advance, including advances that are eligible for the Stay of Default.

In addition, 2018 advances that include an interest-bearing portion will continue to accrue interest throughout the extension.

Farmers who have questions about their cash advance or the Stay of Default are encouraged to contact CCGA at 1-866-745-2256 or email repay@ccga.ca.