MP Larry Miller Welcomes Improvements to Advance Payments Program

April 2, 2015

 

MP Larry Miller Welcomes Improvements to Advance Payments Program

 

Ottawa, ON – Recently, major enhancements to the Advance Payments Program (APP) designed to improve and streamline administration, provide greater flexibility and more repayment options, and ease access to the program for producers came into effect. Larry Miller, MP for Bruce-Grey-Owen Sound, welcomes these enhancements.

 

The Advance Payments Program (APP) is a financial loan guarantee program that gives producers easier access to credit through cash advances. Advances provide up to 50% of the average market price producers are expected to receive for their agricultural product. Producers can receive cash advances of up to $400,000 with the first $100,000 interest-free for up to 18 months.

 

New enhancements to the APP include:

–       Producers can receive advances for all commodities through one application with a single administrator;

–       No requirement for a producer to be principally occupied in farming;

–       A repayment schedule in line with the perishable date of non-storable products thereby avoiding the need for proof of sale;

–       Repayment of advances can be made without proof of sale without penalty:

  • When a producer waits to market the commodity until conditions are more favourable; or
  • If the agricultural product becomes unmarketable through no fault of the producer.

These enhancements are part of the Agricultural Growth Act which modernizes and strengthens federal agriculture legislation, supports innovation in the Canadian agriculture industry and enhances global market opportunities.

 

“The changes to the Advance Payments Program that recently took effect will give farmers in Bruce and Grey counties a more flexible tool to manage their cash flow and will be in place in time to help producers plan for the upcoming production year,” said Miller. “These changes will cut red tape, make the program easier to access, and create flexible repayment options for all farmers.”

 

Across Canada, more than $1.9 billion in advances has been provided to close to 21,000 producers for the 2014 program year to date.

For more information please visit; http://www.agr.gc.ca/eng/?id=1290176119212.

 

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