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.

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The Canadian Canola Growers Association commissioned a study by LeftField Commodity Research that determined losses amounted to somewhere between $2 billion and $4 billion in 2025-26.

Trade with China ground to a halt in 2025 due to China’s prohibitive tariffs on canola seed, oil and meal, which were a direct response to Canada’s tariffs on Chinese electric vehicles, steel and aluminum.

“We need compensation for the damages,” Alberta Canola chair Andre Harpe said during a recent webinar.

“To me, there’s no question about that.”

WHY IT MATTERS: Canola is the biggest cash crop for Canadian farmers

He made those comments one day before Canada announced an agreement-in-principle with China that would see tariffs on canola seed fall to 15 per cent as of March 1, 2026, down from 84 per cent today and the 100 per cent tariff on meal eliminated as of the same date.

Harpe was asked if the tariff agreement with China changes anything.

“At the end of the day, the plan is still to continue talking to Ottawa about the compensation for damages done to canola growers,” he said.

The Alberta Canola Producers Commission polled 105 growers at four recent grower engagement meetings, and 72 per cent of them agreed that the federal government should compensate growers, while 12 per cent disagreed and 14 per cent were unsure.

Harpe, who is also chair of Alberta Canola, said they need to come up with a more precise total damage number now that they know when the tariffs are being phased out and by how much.

‘On a park bench with two elephants’

During the webinar, the panellists were asked if an EV deal with China will lead to retaliation from the United States.

Brittany Wood, senior manager of transportation and trade policy with the CCGA, said she wouldn’t rule it out.

“I don’t think we live in a time right now where we can say there is no risk,” she said.

Harpe agreed.

“It’s like we’re sitting on a park bench with two elephants. If one wiggles a little bit, we’re right into the other one,” he said.

Harpe is tired of being pushed around. In September, he told Prime Minister Mark Carney that he estimates canola prices dropped by about $1.25 per bushel following the trade spat with China, a number he confirmed with two different traders of the crop.

China bought $4.9 billion of Canadian canola seed, oil and meal in 2024, ranking second behind the $7.7 billion purchased by the United States. Japan took third spot at $720 million.

Seed accounts for the vast majority of China’s annual purchases, while oil is the commodity of choice for the U.S.

Wood said no Canadian canola moved to China in September and October, the latest months where there is available export data.

Combined sales to other countries totalled slightly more than 600,000 tonnes in October, or about half of last year’s levels for that month. That is the worst October number in 20 years.

Domestic consumption needed

Harpe said the China debacle has reinforced the sentiment that Canada needs to start consuming more canola domestically.

“The easy answer is to use it as biofuel feedstock,” he said.

To that end, Harpe has met with Alberta premier Danielle Smith, lobbying for an increase in the province’s biobased diesel mandate to five per cent from the existing two per cent.

“It’s a simple ask,” he said.

And one that wouldn’t cost much. Alberta Canola estimates the three-percentage point increase would cost drivers an extra 1.5 to two cents per litre at the pump, which is basically a typical overnight fluctuation.

Will Holowaychuk, policy analyst with Alberta Canola, said Imperial Oil’s new renewable diesel plant in Strathcona, Alta., will produce one billion litres of the fuel per year when it is running at full capacity.

It will require about one million tonnes of canola oil, or about 2.5 million tonnes of seed, once it is running at capacity.

“One dedicated biofuel refining facility is able to eat up approximately 40 per cent of the canola that is produced in this province,” he said.

On a national level, Wood noted that the federal government’s recently announced Biofuel Production Incentive is now in place.

It is a short-term subsidy program that will run for 2026 and 2027.

Perhaps the more important federal initiative is the targeted amendments to Canada’s Clean Fuel Regulations announced in the latest federal budget.

Consultations are underway with Environment Canada on what those amendments will look like.

The CCGA is pushing for amendments that will make Canadian canola more competitive with imported feedstocks.

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Earlier that Friday, Prime Minister Mark Carney announced a $5 billion package to aid businesses and industries facing tariffs and job losses. Of that, $370 million over two years was designated for canola producers and the domestic biofuel industry. Carney said that includes increasing that maximum interest free portion on the advance payments program from $250,000 to $500,000.

China recently hit its Canadian canola seed imports with a 75.8 per cent levy and previously slapped 100 per cent tariffs on canola oil and meal. The latter measures are believed to be in response to Ottawa’s 100 per cent duties on imports of Chinese-made electric vehicles. The surcharge on the seed is part of China’s ongoing investigation into allegations of canola dumping by Canada.

‘Discouraged’

“We are discouraged with the government’s support package for the industry. The measures announced today do not reflect the seriousness of the challenge facing the value chain,” CCC president and CEO Chris Davison said in the press statement.

“Farmers should not be expected to borrow their way out of this situation,” added CCGA president and CEO Rick White. “The advanced payments program is not designed to provide the required support canola farmers need under this situation.”

Davison and White said the changes the federal government says it will make to enhance Canadian biofuel production don’t go far enough.

Rather than implementing financial supports, the two presidents said the feds need to resolve the trade issues with China.

“We are calling on the federal government to urgently work with us to provide meaningful and impactful support for the industry as we continue to navigate this trade crisis,” they said. “The federal government must pursue all avenues to resolve the current trade dispute with China and re-open that market for the Canadian canola industry.”

– With files from Jonah Grignon, Glacier FarmMedia

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“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.

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“We’re launching our early application window for the 2024 Advance Payments Program (APP), giving farmers more time to apply,” said Dave Gallant, CCGA’s vice-president of finance and APP operations in a news release today.

Farmers are eligible for up to $1 million in financing, with the interest‑free component at $100,000. The rest is subject to CCGA’s interest‑bearing rate of prime less 0.25 per cent, CCGA said.

“The interest cost savings that a cash advance offers can be significant,” Gallant said.

He encouraged farmers to consider the blended impact of the interest‑free and interest‑bearing components when comparing various financing options.

Farmers can apply on over 50 commodities including field crops, livestock, honey and organic crops.

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

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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

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“We’ve been really focused on making sure farmers have access to inputs and resources to get the 2020 crop in the ground,” Canola Council of Canada president Jim Everson said during an online town hall Tuesday.

However, both the canola council and the Canadian Canola Growers Association (CCGA) have several areas of concern, he added.

One is the decision by Agriculture and Agri-Food Canada to scale back its research operations.

“The canola council is advocating for a timely start to the 2020 yield trials that Agriculture Canada normally does, as long as they can be executed in a manner that is safe for everyone involved from a COVID point of view,” said Everson.

The federal field trials are key to the long-term effort to control blackleg, sclerotinia and other yield-robbing diseases, he said.

Everson said discussions are ongoing with AAFC and farm groups are asking it to review its research work “case by case and project by project to find solutions.”

His organization will continue to offer agronomy services this year, he added.

“We will not change this commitment to support producers, but our programs and our approaches will change.”

Other concerns include the shortage of personal protective equipment for farmers and ensuring they have adequate cash flow, CCGA CEO Rick White said.

“Cash flow is a big worry for farmers, COVID-related or not,” he said.

Like other farm organizations, the two canola groups have been talking to federal officials about changing the Advance Payments Program to help get more cash to the sector.

— Alexis Kienlen is a reporter for Alberta Farmer in Edmonton.

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Federal Agriculture Minister Marie-Claude Bibeau on Thursday announced a six-month stay of default for APP advances on grains, oilseeds and pulses, to March 31, 2020 from the original deadline of Sept. 30, 2019.

The stay, effective Aug. 15, was granted “at the request of nine program administrators” to provide “additional flexibility to repay advances for farmers that may be facing lower prices, reduced marketing opportunities or a decrease in farm cash income,” the federal government said in a release.

The 2018 APP’s interest-free benefit will be maintained on the interest-free portion of farmers’ outstanding advances until March 31 next year for eligible commodities, the government added.

Also effective Friday, farmers who are eligible for this stay will be able to make a cash repayment on a 2018-19 advance without providing proof-of-sale documentation or facing cash repayment penalties, according to the Canadian Canola Growers Association, one of the nine administrators involved.

That said, all other terms and conditions around the 2018-19 APP are still in effect, the CCGA noted. Repayments on advances must be made every time a farmer sells a commodity associated with that advance — and that includes any advances eligible for the stay of default.

Also, the CCGA noted, any 2018 advances that include an interest-bearing portion “will continue to accrue interest throughout the extension.”

Over 21,000 producers took part in the APP in 2018, with an average advance of about $118,000, the government said. That includes 12,902 grains, oilseed and pulse producers, up three per cent from 2017.

In all, the government said, over $1.68 billion were taken in APP advances on grains, oilseeds and pulses for 2018, up six per cent from 2017.

As of July 31 this year, the government said, almost 1,100 new producers have joined the APP for 2019 and about 360 have returned to it after not taking part in the last three years.

Give the “current market turmoil,” Bibeau said in the government’s release, “this stay of default will give them more flexibility and the room to maneuver so they can better manage their liquidity.”

Said turmoil has included trade barriers for exports of Canadian grains, oilseeds and/or pulses in recent months and years in markets including China as well as India, Italy and Saudi Arabia.

“International grain trade issues have impacted marketing plans, and we’ve heard from many farmers asking for additional time to repay their advance,” CCGA CEO Rick White said in the association’s release.

“There are fewer marketing options for selling and prices have declined, which makes it difficult for farmers to sell their crops at a profit.”

Producers who got APP advances for 2018 from any of the nine participating administrators can contact their respective administrator for details, the government said.

Along with the CCGA, those include the Agri-Commodity Management Association, Alberta Sugar Beet Growers, Alberta Wheat Commission, B.C. Breeder and Feeder Association, Manitoba Corn Growers Association, Manitoba Livestock Cash Advance Inc., Producteurs de Grains du Quebec and Western Cash Advance Program Inc. — Glacier FarmMedia Network

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“It’s three days earlier than we planned, but our team has been working very hard, along with program officials, to get this enhanced service in the hands of the hundreds of farmers who have called our office in recent weeks,” CCGA director of operations Dave Gallant said on the association’s website.

“Our updated 2019 cash advance application is now available on three platforms including phone applications, and two web-based options.”

Last week the federal government announced farmers could apply for the higher advances starting June 10 and money would flow as of June 26.

The federal government announced changes to the Advance Payments Program May 1 aimed at improving canola farmers’ cash flow in wake of China’s boycott of Canadian canola seed.

The new maximum eligible advance is $1 million, up from $400,000.

The maximum interest-free advance on all farm commodities remains $100,000, plus an extra $400,000 for canola only.

The new higher interest-free limit for canola applies to 2019 only. The increase to the total amount farmers can borrow is permanent.

Farmers repay the loans as they sell products. The advances provide farmers with cash flow so they don’t have to sell when prices are low.

The CCGA says farmers should apply right away for cash advances.

“We’ll be accepting pre-applications at the increased limits until June 25,” Gallant said. “It’s a good idea for farmers to get their paperwork done early so that we can process these advances and potentially deposit their advance funds on our first day of issuing, June 26.”

The $1 million maximum eligible advance is cumulative over two program years, including 2019 and 2018.

“If a farmer has a 2018 advance, the value of that advance will be included in calculating the maximum eligible advance for 2019,” Gallant said.

Farmers who want to apply for, or increase their advance, but stay under the current limit of $400,000 can apply now and, if eligible, will have funds issued immediately, once approved. These advances would include the new interest-free limit up to $400,000.

Farmers who want to apply for, or increase their advance to an amount that’s more than $400,000 can complete a pre-application now and, if eligible, will have funds issued beginning June 26.

There are several ways to apply to the CCGA for a cash advance. First- time customers can call 1-866-745-2256. Farmers can also download an application form from the CCGA’s website.

Farmers who have an existing 2019 advance and want to apply for additional funds over $400,000 will have to call to complete an application or download an application form.

Existing CCGA customers who have not yet applied in 2019 and already have an CCGA online account have the option to apply online through their cash advance account login or use one of the other options mentioned above.

A number of other organizations administer cash advances, including the Manitoba Corn Growers Association. — Manitoba Co-operator/Glacier FarmMedia Network

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Agriculture Minister Marie-Claude Bibeau and International Trade Diversification Minister Jim Carr on Wednesday announced the expansions and extensions along with plans to engage other “high-potential” export markets for Canadian canola in the face of China’s ban on the product.

Bibeau said the government plans to amend the federal Agricultural Marketing Programs Regulations to temporarily increase APP loan limits for the 2019 crop year.

The maximum allowable limit available under the APP will rise from $400,000 to $1 million and the program’s interest-free component for canola will rise from $100,000 to $500,000, until “market conditions stabilize,” according to the Canadian Canola Growers Association, an APP administrator.

The APP’s interest-free component will remain at $100,000 for all other eligible commodities.

“We are ensuring that farmers have the security they need leading into this year’s season to help manage their cash flow, giving them the flexibility to sell their canola at the best time and at the best price,” Bibeau said.

The CCGA said Wednesday it’s working with Agriculture and Agri-Food Canada program staff to incorporate the changes. CCGA has been issuing APP advances for the 2019-20 crop year since April 1.

“We’re already working on the necessary changes to our systems so that farmers can access these benefits quickly,” CCGA CEO Rick White said in a separate release.

White said he expects CCGA “will be in a position to process applications at the new limits in the near future.” Farmers will be able to find updates on the CCGA website or contact the association at 1-866-745-2256.

“With cash flow being farmers’ most immediate concern, we welcome enhancements that will help build financial predictability for at least the short to medium term,” CCGA president Bernie McClean said in the same release.

The Western Canadian Wheat Growers, in a separate statement Wednesday, contended that changes to the APP “may help short-term cash flow for some farmers, but to be eligible for $1 million advance on canola where $500,000 is interest free, you have to produce approximately 200,000 bushels of canola.

“In order to qualify for the maximum, you need 5,263 acres at 38 bushels per acre, which is roughly a 16,000-acre farm.”

‘More farmers can join’

Bibeau on Wednesday also announced a two-month extension to the federal-provincial AgriStability program’s enrolment deadline for the 2019 year without penalty, moving the deadline from April 30 to July 2, 2019.

Farmers enrolled in the farm income stabilization program “may receive support should they experience a large margin decline,” the government said.

As of April 21 this year, about 51,000 Canadian producers were enrolled in AgriStability for its 2017 program year, the last year for which data is available. “Extending the enrolment deadline means more farmers can join and benefit from government support in times of need,” Bibeau said.

“This exceptional step agreed to by (federal, provincial and territorial) governments will enable the program to help more farmers manage the impact of current market disruptions and production challenges facing many farm operations,” the government said.

Bibeau noted Wednesday she will also attend the G20 agriculture ministers’ meeting in Niigata, Japan on May 11-12, where she “will meet with Japanese industry leaders and officials from several countries to advance Canada’s agricultural trade.”

Carr said Wednesday he will lead a canola trade mission in early June to Japan and South Korea, which the government said “will build on his work to engage other high-potential countries” including the United Arab Emirates, Thailand, Malaysia, Pakistan, Bangladesh, Mexico, Germany and France.

Carr, speaking Wednesday in Ottawa, said he will also promote Canadian canola at upcoming OECD meetings in France and APEC ministerial meetings in Chile.

Bibeau, at the same presentation, also noted trade uncertainty adds to the “many different pressures that can affect (farmers’) mental health” and said work is underway with organizations such as Farm Credit Canada “to provide greater access to supports and services to help farmers experiencing mental health challenges.”

‘Regaining access’

China has been effectively off-limits to Canadian canola seed exports since March. Alleging quality and pest issues, China has suspended the canola export licenses of two major Canadian grain companies, Richardson International and Viterra, and Chinese buyers “remain unwilling” to purchase Canadian canola seed otherwise, the Canola Council of Canada said Wednesday.

“While technical discussions have taken place between the Chinese and Canadian governments, the scientific basis for China’s actions remain unclear,” the council said.

Canada-China relations took a turn for the worse back in December when Canadian officials arrested Meng Wanzhou, chief financial officer for Chinese tech company Huawei, in Vancouver.

Meng, who remains in Vancouver under house arrest, was detained at the request of the U.S. government, which seeks her extradition on fraud charges relating to alleged violation of U.S. sanctions against Iran.

The Canola Council on Wednesday hailed Ottawa’s moves on the APP and AgriStability, and to expand canola markets elsewhere in Asia, but also said “regaining access to the Chinese market remains a priority.”

“We need to consider all options to resume seed exports to China,” council president Jim Everson said in a separate release. “Predictable, rules-based trade is critical to Canadian agriculture and China remains an important market.”

China until now has accounted for about 40 per cent of Canada’s canola seed, oil and meal exports, the council said, with canola seed exports to China in 2018 alone valued at $2.7 billion. Demand “has been very strong until recent disruptions,” the council added.

Bill Campbell, president of Manitoba farm group Keystone Agricultural Producers, said “there has already been a $1.30 per-bushel loss on the crop, and that means a $160 million loss to Manitoba farmers which will drastically affect our provincial economy.”

Many farmers still have the 2018 crop in their bins, “and now with the rock-bottom prices some stand to lose $50,000 or more,” KAP said Wednesday in a separate release. “If the dispute is not solved before the 2019 harvest, the same fate awaits this year’s crop.”

Federal Conservative leader Andrew Scheer, in a separate statement Wednesday, said the party “support(s) increasing emergency financial aid for producers,” but also said it’s “unfortunate that it has taken months of public outcry from premiers, the leader of the official opposition, and canola farmers for the prime minister to take any action.”

Scheer also urged the Liberal government to appoint an ambassador to China and to launch a formal trade complaint against China at the World Trade Organization. Canada has been without an official ambassador to China since Prime Minister Justin Trudeau asked John McCallum to resign in late January.

Asked Wednesday about pursuing potential “hardball” tactics on trade with China, Carr said there’s agreement “across the sector, across provincial governments and across producers” that Ottawa should instead “engage China on the basis of their allegations.” — Glacier FarmMedia Network

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