Since April 1, farmers have been able to apply for more help in paying their 2007 seeding and harvesting bills.
And despite the date, this is no joke.
A revised system of cash advances, renamed the Advance Payments Program, provides a higher payment cap, more interest-free money and a longer time for repayment than had been the case.
The spring and fall cash advance programs have been combined to create a single new program, albeit with separate spring and fall components. Farmers were able to begin applying for their advances April 1.
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- The limit on cash advances has increased to $400,000 from $100,000.
- The interest-free portion of the advance has doubled to $100,000 from $50,000.
- The repayment deadline for spring or fall advances taken out this year will be Sept. 30, 2008. Previous deadlines were Dec. 31 for spring, and Aug. 31 for fall advances.
- For the first time, livestock producers will be able to obtain an advance payment. As of last week, details as to how those payments will be administered had not yet been determined.
Farmers are expected to repay their advance by delivering commodities or by using payments under an authorized business risk management program.
In addition, advance payment rates are up substantially for most grain, oilseed and special crops, with the notable exception of wheat.
As a result of all that, program administrators are expecting increased interest this year.
“We are projecting that there will be more farmers participating and more money being distributed,” said Garry Pichlyk, senior manager of farmer services for the Canadian Wheat Board, which administers advances for wheat, durum and barley.
A spokesperson from the Canadian Canola Growers Association, which administers advances for a host of non-board crops, agrees.
“We expect the number to increase because the benefits are greater,” said Catherine Morgan.
Here are the advance rates for a number of prairie crops, with the previous year’s rate in brackets: wheat $80 a tonne ($80), durum $86 ($75), barley $50 ($35), canola $175 ($114), flax $140 ($126), oats $77.50 ($57). Rates for pulse crops had not been determined as of last week.
Grain farmers can obtain application forms from their local grain elevators.
Producers of a variety of other commodities such as honey, potatoes, vegetables and sunflowers can also obtain advances.
For more information, visit Agriculture Canada’s website at www.agr.gc.ca or call toll free 888-346-2511.
