Prime Minister, Justin Trudeau, today announced important new measures to support farmers and agri-food businesses in Canada facing financial hardship due to the impacts of the COVID-19 pandemic.
Farm Credit Canada will receive support from the Government of Canada that will allow for an additional $5 billion in lending capacity to producers, agribusinesses, and food processors. This will offer increased flexibility to farmers who face cash flow issues and to processors who are impacted by lost sales, helping them remain financially strong during this difficult time.
“Farmers and food producers work hard to put food on tables across our country, and they should not have to worry about being able to afford their loan payments or having enough money to support their own families. We are taking action now to give them more flexibility to meet the challenges ahead in these times of uncertainty,” said the Prime Minister in a press release.
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In addition, all eligible farmers who have an outstanding Advance Payments Program (APP) loan due on or before April 30 will receive a Stay of Default, allowing them an additional six months to repay the loan. This important measure, which represents $173 million in deferred loans, will help keep more money in farmers’ pockets during these critical months.
The Stay of Default will also provide farmers the flexibility they need to manage their cashflow when facing lower prices or reduced marketing opportunities. Applicable farmers who still have interest-free loans outstanding will have the opportunity to apply for an additional $100,000 interest-free portion for 2020-2021, as long as their total APP advances remain under the $1 million cap.
To learn more about the financial support we’ve just announced, click the link below. It’s an important step forward for our agricultural sector – and we’ll be right here with you as the COVID-19 situation continues to evolve. https://t.co/MiOABcAtsj
— Justin Trudeau (@JustinTrudeau) March 23, 2020
“Like many Canadians, I am truly grateful for our farmers and food business owners and employees, who continue working hard so we all have quality food on our grocery store shelves and kitchen tables,” said ag minister Marie Claude Bibeau.
“Their continued work is essential to our plan to manage COVID-19. The measures announced today will provide farmers and food producers across the country with important financial flexibility they will need during these challenging times.”
Day in and day out, farmers and food producers across the country continue to work hard so that we have good food in our stores and on our tables. So to them, we say thank you. We know you’re dealing with the impacts of COVID-19 just like the rest of us, and we’ve got your back.
— Justin Trudeau (@JustinTrudeau) March 23, 2020
