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By Alice McFarlane

Cash advance

Interest-free limit set for Advance Payments Program

Apr 1, 2026 | 1:57 PM

The interest-free limit of the Advance Payments Program (APP) of $250,000 has been established for the 2026 program year, for all non-canola advances.

APP gives producers access to low-cost cash advances of up to $1 million, based on the anticipated value of their agricultural products. Under the program, producers typically receive the first $100,000 interest-free. The higher limit was announced today by Agriculture and Agri-Food Minister Heath MacDonald.

“As Canadian producers get ready for the growing season, our government is making sure they have the support and tools they need,” MacDonald said. “By increasing the interest-free portion of the Advance Payments Program, we’re helping farmers manage costs, while giving them more flexibility to market their products on their terms.”

Farmers can use the advance to purchase inputs and cover production costs growing season. More importantly, the program offers marketing flexibility, enabling producers to sell their agricultural products when it is best suits them, rather than being forced to sell for immediate cash needs, which is especially crucial in times of uncertainty.

The Canadian Federation of Agriculture (CFA) is pleased with the extension of the $250,000 interest free threshold. 

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CFA President Keith Currie said programs like the APP are critical tools that help producers manage cash flow throughout the production cycle.

“Maintaining the $250,000 interest free portion reflects the realities farmers are facing today,” Currie added. “We are seeing continued volatility in input costs, supply chains and global markets, and this type of support is important in helping farmers navigate those pressures.” 

Currie said longer term stability and predictability for producers is the key. 

“Farmers need certainty to plan ahead,” Currie added. “We look forward to continuing to work with government to secure a permanent increase to the interest free portion of the program, so that producers have the predictability they need to make informed business decisions in an increasingly complex operating environment.” 

CFA also noted the importance of timely program announcements to support effective planning for the production season. 

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alice.mcfarlane@pattisonmedia.com