Today, the Minister of Agriculture and Agri-Food, the Honourable Marie-Claude Bibeau, announced that the interest-free portion of the Advance Payments Program will increase from $100,000 to $250,000 for the 2022 and 2023 program years. As a result, participating producers will save on average $5,500 in interest costs over the next two years. This change will represent total savings of up to $61 million over two years for approximately 11,000 producers.
In recognition of the significant challenges facing Canadian producers, including rising input costs, the Government of Canada is ensuring farmers have access to cash flow to cover crop-related expenses by making a change to the Advance Payments Program.
The Program is designed to help producers manage their working capital by providing cash advances of up to $1 million against the expected value of their commodities. Through the increase to the interest-free portion, eligible producers will have access to additional cash flow over the next two growing seasons.
The change to the program will make the purchase of important inputs such as fuel, fertilizer and seed more affordable for producers. This will ensure they can maintain production until they are able to sell their products in the fall or winter. The interest savings and access to cash flow are both critical in helping Canadian producers continue to contribute to global food security.
As pressure on world food supplies continues to increase, Canada is prepared to help fill the gap in world production. The Government of Canada is committed to ensuring producers have the resources they need to protect Canada’s food systems and maximize their contribution to global food supplies.