The federal government last week moved to fulfill a budget and election promise to expand the popular advance payments program.
On Oct. 27, agriculture minister Andy Mitchell introduced legislation that will make livestock and storable crops eligible for the program, increase maximum advances to $300,000 from $250,000 and increase the interest-free portion to $60,000 from $50,000.
The changes were first recommended in a report to Parliament 18 months ago. The cash advance program allows farmers to take a loan, partially interest free, using unsold crop as collateral.
The government picks up interest costs on part of it.
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It helps cash flow and allows farmers to hold their product in hopes that prices will improve.
Last winter, finance minister Ralph Goodale used the 2005 budget to announce that he was allocating $26 million annually for four years to cover the additional costs from a revised cash advance program.
Mitchell said in a News release
news announcing the legislation that the administration of the program also will be improved: “Measures to streamline the programs will make it easier for producers to access available benefits.”
Canadian Federation of Agriculture president Bob Friesen said farmers will welcome the changes.
“This is an important program for farmers and these changes are helpful, although they don’t go as far as we’d like to see them go,” the Manitoba hog and turkey producer said.
“We have been keenly interested in seeing the program expanded to include the livestock industry. This will give livestock producers more options about when they should market.”
He also noted that storable crops such as blueberries and cranberries will be included once the legislation passes through Parliament, a process that is expected to be quick once the government puts the bill on the debate agenda.
Friesen said the CFA believes both the maximum advance and the interest-free portion should be higher than proposed in the bill.
“But this clearly is a step forward.”
