Cash advance access changed

Amendments to federal regulations made a year ago are now in effect, giving more producers access to cash advances and simplifying the application process.

Federal agriculture minister Lawrence MacAulay said the program is more flexible.

The changes in place under the Agricultural Marketing Programs Act for the 2016 program year make specific classes of breeding cattle, hogs, sheep and goats intended for market eligible for advances.

Producers can use more types of security, such as private insurance, to obtain advances, a streamlined process reduces paperwork for returning clients and there is easier access for companies with multiple shareholders.

“These changes to the Advance Payments Program will mean improved cash flow for farmers, helping them meet their financial obligations while at the same time reducing their paper burden,” MacAulay said.

The program offers advances of not more than 50 percent of the average market price the department estimates producers would receive for a particular product to a maximum of $400,000.

Ottawa pays the interest on the first $100,000 issued per production period and producers have until the end of that period to repay the money.

The advances are administered by producer organizations in each province. A list can be found at www.agr.gc.ca.

karen.briere@producer.com

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