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Advance Payment Program

Advance payment program delivered remotely

Mar 25, 2020 | 3:55 PM

Farmers can start submitting applications for the 2020 cash advance program but they may notice some differences.

Canadian Canola Growers Association (CCGA) president and executive director Rick White said the challenge is adjusting to a system where the applications are being processed remotely to comply with COVID-19 social distance recommendations.

“We have been under business practice changes here at CCGA in response to the COVID-19 issue,” White said. “We have all staff working remotely now so our productivity may not be quite as high as it has been in the past, just because we have all 65 staff, working remotely, which has been an operational challenge.”

White said staff are working on pre-applications and they will be ready to start issuing money on April 1.

“It’s looking like it’s going to be fully subscribed, if I could use that term, or a lot of interest in the 2020 program. Farmers need the cash and this is a cash flow tool for them to get them going on 2020,” he said.

White said the contact centre is running and the computerized phone connections are holding together.

“It was a push on resources in terms of technology but we think we have it right,” he explained. “If farmers get a busy signal, just try again. We’re doing our best to address all questions. Either phone, email or online, all those are functioning, maybe not quite 100 per cent capacity. We just need a little bit of breathing room and understanding from farmers.”

White said there haven’t been any staff changes as a result of the COVID-19 pandemic.

“They’re all working and we’re all remote. Regardless of what happens with the health crisis we remain safe, off site and separate from each other and we will continue to serve farmers and operate this program through this,” White said.

He added farmers need to understand that once they sell a crop they must repay the advance.

“Farmers have 30 days to provide proof of sale that they are to pay off their advance as they sell their grain. Any deliveries they make now, they should be sending CCGA the money for payment of the advance as that grain gets sold.”

White said CCGA has been communicating directly with farmers for the 2020 program. He said producers will notice a few changes starting with no administration fee.

“We have lowered our administration fee. It used to be $50. Now it is zero,” he said. “We dropped the interest bearing amount which is now prime minus 75 basis points. Financing to the farmer on the interest bearing part is now 2.2 per cent as CIBC prime has dropped as well. So, it’s prime minus 75 as compared to last year, which was prime minus 50. So, we dropped the interest rate again.

White said they are trying to give back directly to the users of the program.

“We’re doing what we can as an organization to flow the benefits back to farmers directly.”

alice.mcfarlane@jpbg.ca

On Twitter: @AliceMcF

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