Applications can now be made under the Advance Payments Program—better known as the cash advance.

Applying early ensures everything is ready to go when money from the federal program comes out in early April. The cash advance helps cover initial production costs and is repaid when the crop or livestock is sold.

Several organizations administer the program on behalf of the federal government including the Canadian Canola Growers Association. Dave Gallant is the CCGA Director of Finance and Operations.

In addition to the interest-free $250,000—the CCGA interest rate will remain at prime less three quarters of a per cent up to an additional $750,000.

Gallant says rates for the individual commodities are higher than last year

Gallant is anticipating even more farmer applications this year due to several interest rate increases.

“We did over 9,000 advances last year, and we saw a steep increase in the value of advances,” he said. “Farmers took almost 40 per cent more than the prior year.”

Nearly $2.3 billion of cash advances were issued to Western Canadian farmers through the CCGA last year.

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