The Canadian Canola Growers Association (CCGA) says it issued over $275 million in cash advances through the Advance Payments Program on the first day of the program (April 1) to more than 1,500 farmers across Western Canada.
“With the price of inputs rising, and interest rates on an incline, we’re seeing robust uptake of the spring program,” said Dave Gallant, CCGA Director of Finance and Operations. “Farmers who take advantage of a cash advance can see significant savings on their borrowing costs. The first $100,000 of an advance is interest-free and the remaining portion is charged prime less 0.75%, so savings on interest costs can range from several thousand dollars to nearly $20,000, depending on the value of the advance and comparative interest rates.”
He notes a significant change that farmers will see this year is an increase in the commodity advance rates resulting from higher commodity market values. For example, the 2022 advance rate per tonne for wheat is up $34/tonne, and for canola up $111/tonne over 2021 rates. This means for the same number of acres on the same crops, farmers will have access to more advance funds.
Through CCGA, farmers can access advances on over 50 commodities including field crops, large and small livestock, organic crops and livestock, and honey.
Producers can apply for a cash advance of up to $100,000 interest-free and to a maximum of $1,000,000. The interest-bearing portion is charged an interest rate of prime less 0.75%.