Inspectors visit farms to check cash advance

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Published: July 21, 1994

SASKATOON (Staff) – A cash-advance inspector may be driving into your farmyard this summer.

A sharp increase in defaults has prompted the federal government to conduct random farm inspections to ensure farmers are complying with the rules of the Prairie Grain Advance Payments Act.

Defaults totalled $45 million in 1992-93, or 4.7 percent of total advances issues, compared to historical default averages of 0.3 percent.

The on-farm inspections are a followup to an earlier audit that showed in some cases the advances requested by farmers didn’t match normal yields.

Farmers with outstanding advances will be randomly selected in all four western provinces.

An inspector will visit the farm at a mutually convenient time and determine the grade and volume of wheat and barley in storage.

Farmers will be asked to detail their grain sales during the period in question.

Those with insufficient grain in storage to support their outstanding advances will be given 20 days to rectify the situation.

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