The federal government has decided against lowering the interest-free limit on the Advance Payments Program, also known as the cash advance.

The program helps farmers cover input costs until their products have been sold and the advance paid back.

The cash advance had a $100,000 interest free limit until 2021.  Following an extensive drought, it was increased to $250,000 in 2022 and $350,000 in 2023.

Ottawa had intended to return to the $100,000 interest free limit next Monday, but lobbying by agricultural organizations resulted in a compromise.

The program is available on most crop and livestock products in Canada.