REGINA — Farmers applying for spring cash advances should be aware the interest-free portion has dropped back to 2021 levels.
For the last few years the government temporarily increased the interest-free amounts to reflect challenging conditions including high interest rates. In 2023, farmers were eligible to receive up to $350,000 interest-free; the maximum total advance available is $1 million.
Now, however, Ottawa will pay the interest on only $100,000, as it typically did.
Read Also
Alberta brothers develop rock-solid innovation
Brothers with TrueLine MFG invents new rock damsfor headers that is exploding with interest across Canada, the U.S. and Australia which serves as a cheap protective measure for expensive farm equipment.
The Agricultural Producers Association of Saskatchewan said that decision is “causing widespread apprehension” among producers.
APAS and the Saskatchewan Cattlemen’s Association sent a joint letter to federal minister Lawrence MacAulay asking that the $350,000 amount be reinstated.
“It’s been three years since the APP interest-free portion was at $100,000 and interest rates have skyrocketed, grain prices have dramatically declined and input prices have remained high,” said APAS president Ian Boxall in a news release.
“The program needs to reflect the current realities of farm and ranch operations. Our margins are tighter today than two years ago when the amount was increased due to rapidly increasing input costs.”
APAS estimated the change could cost farmers an estimated $30,000 in interest costs.
The group and other organizations will meet with MacAulay next week during the Canadian Federation of Agriculture annual meeting in Ottawa.
The Canadian Canola Growers Association, one of the agencies that offers the APP, opened its early application window for 2024 advances Feb. 12.
Contact karen.briere@producer.com
