(submitted photo/Ministry of Agriculture)

By Alice McFarlane

Advance Payments Program

Producers get more time to repay cash advances

Aug 15, 2019 | 5:00 PM

Producers will soon have more time to repay cash advances.

Federal Agriculture Minister Marie-Claude Bibeau announced a Stay of Default for the 2018-19 Advance Payments Program (APP) affecting farmers with cash advances on grains, oilseeds and pulse crops.

This means the current repayment deadline of September 30, 2019 is pushed to March 31, 2020, for cash advances issued by Canadian Canola Growers Association (CCGA) and eight other APP administrators.

CCGA Executive Director Rick White said the administrators made the request to Bibeau.

“During the past 12 months farmers have faced a number of challenges, so we are pleased minister Bibeau has responded with additional support to help them navigate these issues,” White said.

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“International grain trade issues have impacted marketing plans and we’ve heard from many farmers asking for additional time to repay their advance,” White said. “There are fewer marketing options for selling and prices have declined, which makes it difficult for farmers to sell their crops at a profit.”

The Stay of Default will be effective immediately. The interest-free benefit will continue throughout the six-month extension and farmers who are eligible will be able to make a cash repayment on their 2018-19 advance without providing proof of sale documentation or facing cash repayment penalties.

All other existing terms and conditions associated with the 2018-19 APP remain in effect.

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alice.mcfarlane@jpbg.ca

On Twitter: @AliceMcF