From a news release
The federal government has implemented the new regulations necessary to strengthen the Advance Payments Program, as announced on May 1st.
According to Agriculture and Agri-Food Canada, these changes will provide farmers with more cash flow, providing them flexibility to manage their farm operations, adjust their marketing plans and explore new market opportunities. The moves are aimed at mitigating the damage from a trade dispute with China over Canadian canola.
China suspended the licenses of two Canadian companies to export their canola seed to China, citing non-compliance with their plant health requirements. At the same time, China strengthened their inspection measures on all Canadian canola seed shipments.
The amendments made to the Agricultural Marketing Programs Regulations increase loan limits from $400,000 to $1 million for all producers on a permanent basis, and increase the interest-free portion of loans on canola advances from $100,000 to $500,000 in the 2019 program year under the APP. Producers of all other commodities can continue to receive up to $100,000 interest-free.
With the regulations now in place, government officials are working with the 36 program administrators to revise contracts, operating procedures and to ensure system changes are properly implemented, and are working as efficiently and effectively as possible. Producers will be able to apply for the new amounts as early as June 10 and new advances above $400,000 will be issued as of June 26.
Producers are encouraged to contact their APP administrator regarding application details and processing timelines. In the meantime, the Government continues to provide producers access to the current advance limit of $400,000, which effective immediately, is interest-free for all canola advances.
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