Farmers Forum staff
OTTAWA — More interest-free money is now available to help farmers with rising production costs, through the federal Advance Payments Program. The program offers cash advances on a producer’s future sale of crops and livestock.
While the maximum $1 million advance remains unchanged, the Trudeau cabinet upped the interest-free portion from 25 % to 35 % — or from $250,000 to $350,000 on the full amount. That’s a 40 % rise in the program’s interest rate relief, and according to online news publisher Blacklock’s Reporter, the change — effective May 8 — will cost taxpayers an estimated $11.8 million.
Approximately 19,000 farmers collect advances of more than $3 billion each year, according to an Agriculture and Agri-food Canada estimate. Amid rising inflation and interest rates, Ottawa has been pumping more money into the program since the pandemic. Earlier in 2023, the government temporarily waived a two-installment rule and agreed to provide advances in upfront lump sums.
In 2022, it raised the interest-free portion from $100,000 to $250,000. The government says the latest change could save participating producers an additional $3,600 in interest costs for the year.
