Advance Payments Program

Description

The Advance Payments Program (APP) is a Government of Canada program which supports the provision of cash advances to producers across Canada.

What is the APP?

The Advance Payments Program (APP) is a Government of Canada program which supports the provision of cash advances to producers across Canada.

Why should I use the APP?

Created for farmers, this ag-mazing program allows you to borrow at low rates, repay as you sell, and market your product when prices are most advantageous.

When can I get the APP?

Financing available year round providing up to 18 months of financing for over 4,000 different commodities such as grains and oilseeds, vegetables, livestock, ginseng, hemp, and even potted plants.

How much can I borrow?

Eligible companies can receive up to $250,000 in the 2024 and 2025 Program Years interest-free, with an additional $750,000 available at the Prime Interest Rate, for a total of $1,000,000.

How can I get the APP?

For more information about the APP or to process an application over the phone, call ACC toll-free at 1-866-645-8291.

 

• Under the program, producers can access up to $400,000 per program year in advances based on the value of their agricultural product, with the Government of Canada paying the interest on the first $100,000 advanced to a producer. Advances are repaid as the producer sells their agricultural product, with up to 18 months to fully repay the advance for most commodities (up to 24 months for cattle and bison).
• Operating capital for crop inputs
• $1,000,000 Loan Maximum
• First $250,000 for 2024 & 2025 - Interest-free / Balance @ Prime
• Financing up to 18 months (includes enrollment in storage component)
• The loan rate is calculated at approximately 50% of the projected farm gate value
• Loan calculations are related to Production Insurance Guarantee, AgriStability Reference Margin, ASRA Reference Margin or quantity of product in storage
• Farm-fed grains and silage are not eligible
• Repayment as crop is marketed - supported by receipts after Jan 31st
• Repayment commodity specific
• Deadline to repay: December 30th in case of non- storable crops
• Can transfer balance to APP storage before December 30th

ELIGIBILITY REQUIREMENTS: **Sole Proprietors, Partnerships, Corporations and Cooperatives are all eligible** Under the Agricultural Marketing Programs Act (AMPA), to be eligible, the Producer must continuously own the Agricultural Product for which the Advance payments will be made; be responsible for marketing it; either have produced or be producing the Agricultural Product; be a Canadian citizen or a permanent resident of Canada; be of the age of majority in the province of operation; demonstrate that they have met and are capable of meeting all obligations under all Repayment Agreements.