This extends the $250,000 limit, which was set in March 2025.

Producers can receive an additional $250,000 interest free on canola only for a total of $500,000.

“By increasing the interest-free portion of the Advance Payments Program, we’re helping farmers manage costs, while giving them more flexibility to market their products on their terms,” Agriculture and Agri-Food Minister Heath MacDonald said in an April 1 news release.

The program offers up to $1 million to Canadian farmers based on the expected value of their agricultural products. Twenty-four industry groups across Canada deliver the program.

The Canadian Federation of Agriculture praised the extension of the $250,000 interest-free limit.

“Maintaining the $250,000 interest free portion reflects the realities farmers are facing today,” said CFA president Keith Currie.

“We are seeing continued volatility in input costs, supply chains and global markets, and this type of support is important in helping farmers navigate those pressures.”

“We look forward to continuing to work with government to secure a permanent increase to the interest free portion of the program, so that producers have the predictability they need to make informed business decisions in an increasingly complex operating environment,” he added.

The post Advance Payments Program interest free limit set at $250,000 for 2026 appeared first on Canadian Cattlemen.

Under the 2026 Advance Payments Program, farmers can apply for up to $1,000,000 in financing, including:

• Up to $100,000 interest free on more than 50 commodities
• Up to an additional $400,000 interest-free on canola only
• An interest-bearing advance rate of prime less 0.25 per cent

CCGA will begin issuing funds on April 1. The Advance Payments Program is a federal program which the CCGA administers.

The post Applications open for 2026 Advance Payments Program: Canadian Canola Growers appeared first on Canadian Cattlemen.

Farmers can access to up to $500,000 interest-free with a maximum eligible advance of $1 million.

For 2025, the interest-free component includes up to $250,000 for any commodity eligible under the program, plus an additional $250,000 for canola only.

The necessary regulatory amendments took effect on Sept. 16. These provide for a temporary doubling of the interest-free portion for canola advances under the Advance Payments Program. Canadian Canola Growers Association (CCGA), which administers the program in Western Canada, began issuing advances on Friday, the association said in a news release.

“CCGA will reassess all current 2025 customer advances and reallocate the interest-free and interest-bearing portions of those advances in a way that maximizes the interest-free benefit available to eligible farmers,” said Dave Gallant, CCGA’s Vice-President, Finance & APP Operations.

“We are responding quickly so that all farmers can benefit from this change and will notify existing customers about the program changes and any actions required on their part.”

Farmers can apply for up to $1 million in financing in 2025, with up to $500,000 interest-free, and the remaining at an interest-bearing rate of prime less 0.25 per cent.

Ottawa announced the program changes in early September as part of a spending packaged geared towards aiding the canola sector amid crippling Chinese tariffs, and boosting domestic biofuel production.

The post Increased interest-free canola cash advances rolling out appeared first on Canadian Cattlemen.

“When the program changes are approved, CCGA will take action to implement the higher interest-free benefit for canola quickly so that all farmers, including those who already have a 2025 cash advance, can benefit,” said Dave Gallant, the association’s vice-president, of finance and APP operations in a Tuesday news release.

“CCGA will notify existing customers about the program changes and any actions required on their part. We hope to make the process seamless for all farmers.”

Ottawa announced late last week it would temporarily increase the interest-free portion for canola advances in the Advance Payments Program to $500,000 from $250,000 to aid farmers facing market disruptions due to Chinese tariffs on Canadian canola. The change will be in place for the rest of 2025 and the 2026 program.

CCGA said it is awaiting further details from Agriculture and Agri-Food Canada as the changes work through the regulatory process.

“At this time, information is limited, so we encourage farmers to await further details from CCGA either from our website or through our normal customer communications channels,” Gallant said.

Canola groups underwhelmed by federal support

Federal aid initiatives for the canola sector included $370 million in biofuel production incentives aimed at making Canada’s producers more competitive with their counterparts in the United States.

The Liberal government also announced it will invest an additional $75 million over five years in Agriculture Canada’s AgriMarketing program starting in 2026-27.

The money will be spent on expanding the program into high-growth areas such Africa, the Middle East and the Indo-Pacific.

Canola groups said they were underwhelmed by the federal government’s aid measures.

“The measures announced today do not reflect the seriousness of the challenge facing the value chain,” Chris Davision, president of the Canola Council of Canada said in a press release.

“We have communicated the need for appropriate financial and policy supports, and the federal government has missed the mark.”

Farmers shouldn’t have to borrow: CCGA

Canadian Canola Growers Association president Rick White said farmers should not be expected to borrow their way out of the situation.

“The Advanced Payments Program is not designed to provide the required support canola farmers need under this situation,” he said in the joint press release.

Davison said the government failed to recognize the extensive impacts on the rest of the value chain, noting that exporters and processors are also facing “significant financial impacts” due to the closure of the Chinese market.

The groups were happy to see there was some support for the biofuel sector but noted that the incentive does not go far enough in driving meaningful additional domestic demand for canola.

They called on Ottawa to provide “meaningful and impactful” support for an industry navigating a trade crisis and to “pursue all avenues” for resolving the dispute with China.

—With files from Sean Pratt

The post Canadian Canola Growers await info on Advance Payments Program changes appeared first on Canadian Cattlemen.

“Now is a great time for farmers to get their application submitted, so we can process their paperwork and provide the spring operating funds they need as quickly as possible,” said Dave Gallant, CCGA’s vice-president, of finance and APP operations.

CCGA will begin issuing cash advance funds on April 1.

Farmers can apply for up to $1 million in financing. The interest-free component is set at $100,000 with the rest at CCGA’s interest-bearing rate of prime less 0.25 per cent.

First-time applicants are encouraged to apply through CCGA’s contact center. Returning customers can also use the self-serve options available in their online account CCGA’s website.

The Advance Payments Program is a federal loan program administered by CCGA.

The post Advance Payments Program applications open for 2025 appeared first on Canadian Cattlemen.

However, he did suggest farmers talk to the finance minister about it.

Speaking to delegates at the Canadian Federation of Agriculture annual meeting, the minister referenced the APP while talking about available programs. He said farmers had been through a lot in the last few years with pandemic supply chain issues, global unrest and extreme weather.

“We have programs that will assist, (like) the advance payment program,” he said, adding farmers can access up to $1 million.

He said the interest-free portion had risen from $100,000 to $250,000 to $350,000 last year.

“That helps. I used that when I was a farmer myself,” he said.

However, Ontario Federation of Agriculture delegate Ethan Wallace noted that the $350,000 no longer applied.

“It is currently back to $100,000. Can you or your government commit to putting that limit back to the $350,000?” he asked.

MacAulay replied: “Perhaps the government can. I can’t.”

He said he would push for that every chance he gets.

Bloc Quebecois agriculture critic Yves Perron said he didn’t know the $100,000 limit was back in place.

“It has to be $350,000,” he said during his speech. “It has to be kept at that level.

Conservative agriculture critic John Barlow said he also didn’t know until farm organizations began contacting him.

He said he wouldn’t bet the farm on the decision being reversed.

Meanwhile, delegates also raised Bill C-234 and asked speakers if they support the amended version of the bill, which leaves farm buildings and greenhouses out of any possible carbon tax exemption.

Perron said his party supports passing the amended version because at least grain drying will be covered.

The Conservatives and NDP prefer the original bill.

“We intend to reject the Senate amendments to it,” said NDP critic Alistair MacGregor to applause.

However, with the BQ support, the Liberal government can pass the amended bill whenever the matter comes to a vote.

—Karen Briere writes for the Western Producer from Saskatchewan.

The post CFA delegates want interest-free portion of APP back at higher limit appeared first on Canadian Cattlemen.

Agriculture Minister Marie-Claude Bibeau confirmed Wednesday that the interest-free limit under the Advance Payments Program (APP) for the 2023 program year is now $350,000, effective Monday (May 8).

The regulatory amendments allowing this increase are not retroactive, the government noted. The new limit will be applied to existing APP advances as of Monday, when the amendments came into force, and producers still must pay any interest that accrued on an existing advance before that date.

Bibeau said Wednesday the decision comes as farmers “continue to face significant financial challenges including high input costs and rising interest rates.”

The APP gives eligible farmers access to up to $1 million, calculated based on up to 50 per cent of the “anticipated market value” of production, whether it’s in storage or still to be produced — with “preferential” interest rates on the portion above the interest-free limit.

The operating credit from a cash advance thus can help improve a farm’s cash flow or offer the flexibility to sell commodities into more favourable market conditions, the government said.

Following the budget announcement in March, at least one farm consultant suggested other farmers might consider investing interest-free APP cash to benefit from the current interest rate environment.

APP advances, on most eligible commodities, must be repaid in full over the following 18 months. On cattle and bison production, that repayment period is 24 months.

The single-year interest-free limit increase to $350,000 is on top of last June’s temporary increase to $250,000 for the 2022 and 2023 program years — up from the usual limit of $100,000.

That earlier increase is estimated to save farmers an average of $8,600 over the two years, the government said Wednesday. This week’s increase, meanwhile, is expected to translate to total savings of up to $12.4 million, or an additional $3,600 in interest costs per applicant on average.

The government estimated the total federal investment for these increases for 2022 and 2023 could run up to about $94.9 million.

APP cash advances are delivered in Canada through 30 industry-led associations. One such program administrator, the Canadian Canola Growers Association, said last month it was waiting for the updated interest-free limit to be made available and “will notify customers as soon as we are able to issue advances under these new parameters.”

The CCGA also noted last month that some of the APP advance rates for 2023 have risen or fallen while others remain flat. For example, it said, the 2023 advance rate per tonne for wheat is up 20 per cent, and for canola up nine per cent, over 2022.

The feds, in Wednesday’s release, said they also plan to consult further with the provinces and territories “to explore ways to extend help to smaller agricultural producers who demonstrate urgent financial need.” — Glacier FarmMedia Network

The post Feds lock in higher interest-free portion on cash advances appeared first on Canadian Cattlemen.

Agriculture Minister Marie-Claude Bibeau on Thursday announced a temporary increase in the interest-free portion of the Advance Payments Program to $250,000, up from the usual $100,000, for the 2022 and 2023 program years.

The change will be made by way of amendments to the Agricultural Marketing Programs Regulations and will be applied to existing advances under the 2022 APP as of June 20, when the regulatory amendments came into force.

The APP provides eligible farmers with cash advances of up to $1 million against the expected value of their commodities in a program year. Farmers repay APP advances as they sell their production, with repayment periods of up to 18 months to fully repay the advance for most commodities, and up to 24 months for cattle and bison.

APP cash advances are calculated based on up to 50 per cent of the anticipated market value of eligible agricultural products that will be produced or are in storage.

“Through the increase to the interest-free portion, eligible producers will have access to additional cash flow over the next two growing seasons,” the government said in a release.

“This year, agricultural producers are facing significant increases in input prices,” Bibeau said in the same release. “By suspending interest on the first $250,000 of their Advance Payments Program loans, we are providing relief to those women and men who work so hard to feed us and the world in these uncertain times.”

The program, which is delivered through 30 industry associations, last year distributed $2.39 billion in advances to 17,430 producers across the country.

“This change becomes effective June 20, and we’re eager to sort out the program details with the APP staff as quickly as possible so that farmers, both those who already have their 2022 cash advance along with those who will apply in 2022, can benefit from these changes,” Dave Gallant, director of finance and operations for Canadian Canola Growers Association (CCGA), one of the APP delivery agencies, said in a separate release.

“With higher input costs, rising interest rates, and continued pressure from weather impacts and supply chain challenges, many farmers will be keen to access the increased benefit soon.”

“Producers’ cash flow has been hit hard over the last year by the widespread drought conditions and now the rising costs of fuel, seed, and in crop management,” Alberta Wheat Commission chair Greg Sears, whose organization manages the FarmCash advance payments system, said in a separate release Thursday.

“Canadian producers are proud to step up and support the national and global food supply, but we need the business risk management tools in place to be able to do what we do best, the cost savings instilled by this change will ensure we are set up for success.” –– Glacier FarmMedia Network

The post Cash advances’ interest-free portion temporarily raised appeared first on Canadian Cattlemen.

Federal Agriculture Minister Marie-Claude Bibeau on Wednesday announced a “temporary waiving” of the program’s usual requirement that pre-production cash advances be issued in instalments of 60 per cent up front and 40 per cent after seeding is confirmed.

The temporary waiver, providing for an immediate 100 per cent advance on application, is expected to increase cash flow for producers this spring to help manage current high input costs, Agriculture and Agri-Food Canada said in a release.

The department cited “exceptional circumstances” this spring, such as feed shortages due to drought, along with “disrupted supply chains and increased input costs” such as for fuel and fertilizer, due to the war in Ukraine and delays stemming from the global COVID-19 pandemic.

The Advance Payments Program provides cash advances of up to $1 million based on up to 50 per cent of the anticipated market value of a farm’s eligible production, whether it’s still to be produced or is already stored.

The first $100,000 advanced in a given crop year is interest-free; producers get up to 18 months (24 for cattle and bison) to fully repay a given year’s advance.

The temporary waiver to the up-front limit “comes in time for the planting season and will help farmers purchase the inputs needed for sustainable food production,” Bibeau said in Wednesday’s release.

The Alberta Wheat Commission, which administers the FarmCash advance program for growers in the four western provinces, noted Wednesday the new waiver follows an increase announced last week in the Advance Payments Program’s individual commodity rates.

For example, FarmCash chief operating officer Syeda Khurram said last Friday, a canola producer in Saskatchewan was previously eligible for a total advance of $504,400 on 2,000 tonnes of canola, but the same producer in 2022 qualifies for an advance of up to $727,500 on the same commodity.

FarmCash program administrators said Wednesday that in situations where a producer has already applied for an advance for this spring via FarmCash and received partial funds, the balance of those advances will be issued “within 24 hours.”

“The change announced today is welcomed by producers struggling with their cash flow this season,” Alberta Wheat Commission chair Greg Sears said in that group’s release Wednesday. “In these unprecedented times, changes to business risk management programs are necessary to help producers and industry weather the challenges.”

“Producers are facing some big increases in input costs as well as rising interest rates, and this change will help us to manage our costs,” Ian Boxall, president of the Agricultural Producers Association of Saskatchewan, said Wednesday in a separate release. “This will be especially helpful to young producers and operations that are facing cash flow issues after last year’s severe drought.”

The Advance Payments Program, which is delivered through 30 various ag industry associations, last year provided 17,340 farmers with a total of $2.39 billion in advances.

AAFC on Wednesday also noted that federal ag and agrifood lending agency Farm Credit Canada in December began offering credit limit increases of 30 per cent for crop input financing, for farmers who meet pre-approval criteria. — Glacier FarmMedia Network

The post Advance Payments Program to offer 100 per cent up front appeared first on Canadian Cattlemen.

In a statement Wednesday, Agriculture Minister Marie-Claude Bibeau said Ottawa gets that Canadian dairy farmers want more direct payments beyond the $345 million already earmarked for those in the fund’s first year.

Bibeau’s statement followed a meeting with dairy producers from Quebec’s Saguenay-Lac-Saint-Jean region to discuss the funding package.

“To clarify any comments regarding the delivery mechanism, I would like to make clear that we fully understand dairy farmers want direct compensation,” she said.

The government, she said, “will continue to work with the Dairy Farmers of Canada to determine terms and conditions for future years.”

The year-one round of direct payments, as announced last week, is expected to flow through the Canadian Dairy Commission and to be issued “in proportion to (farmers’) quota held.” A farm with an 80-cow dairy herd, for example, could expect a payout of around $28,000.

Response from farm groups to last week’s dairy funding announcement has been a mixed bag at best, with the Canadian Federation of Agriculture saying it “welcomes” Ottawa’s announcement but also highlighting the lack of similar funds for other ag sectors outside of the supply-managed.

“Farmers are under an immense amount of stress and anxiety as their livelihoods are being threatened by factors that are completely out of their control, with seemingly no end in sight,” CFA president Mary Robinson said in a release. “Without quick support, there will be long-term consequences to Canadian agriculture.”

Of the dairy funding, the CFA said it “commends” Ottawa’s recognition of the “negative consequences” arising from Canada’s recent international trade agreements such as the Trans-Pacific Partnership (CPTPP) and Canada-E.U. trade pact (CETA).

However, the organization said Monday, “other sectors in Canadian agriculture, such as pork, beef and canola, have been equally negatively impacted by recent aggressive trade actions” such as China having “effectively closed” its ports to Canadian canola seed and pork.

“The impacted sectors require the same kind of government support that supply-managed sectors have received, whether through direct compensation or improved business risk management programming,” the CFA said.

“This disruption was not created by farmers, and instead is the result of geopolitical actions where the Canadian agriculture sector has become collateral damage.”

More bluntly, Western Canadian Wheat Growers president Gunter Jochum ripped Ottawa’s dairy funding pledge as “electioneering” ahead of the federal vote on Oct. 21.

“Dairy farmers in Quebec are receiving funding whereas grain farmers across the Prairies are only offered ways to increase their farm debt through the Advanced Payment Program,” he said, a reference to APP expansions announced in May.

The WCWG said Monday it got a “non-committal answer” on July 29 to a June 17 letter to Bibeau airing its concerns.

“All we want is free-market access to our trading partners. It seems that some farmers are more equal than others,” WCWG director Stephen Vandervalk said in the same release. — Glacier FarmMedia Network

The post Future payouts from dairy fund still up for discussion appeared first on Canadian Cattlemen.