Farmers can now apply for the 2022 Cash Advance Scheme
The Canadian Canola Growers Association (CCGA) is now accepting applications for the 2022 Cash Advance Program.
Dave Gallant is CCGA’s director of finance and operations, says with low-interest farmers looking for options to finance their spring inputs
you might want to give a cash advance a second look.
“Farmers can apply for cash advances under the federal government program, with the first $100,000 interest free. There is no charge to CCGA for a cash advance, and the overall program limit is one million dollars. So on the remaining $900,000 CCGA loans to farmers at prime less 3/4 percent. So today the prime rate is 2.45%, which means that on the extra $900,000 the farmer would pay 1.7% interest. Which gives you a blended rate of 1.5%. over a million dollars.”
He says that since commodity market values are so much higher than they were last year, the federal government has increased cash advance rates.
“So, for example, canola this year is $363.75 a tonne, last year it was $252 a tonne. This means that for the same amount of grain or the same number of acres, farmers will probably be able to receive between $25 and $35 a tonne. hundred more money for their cash advance than the previous year. »
He notes that the cash advance program covers about 55 different commodities, including all grains, oilseeds, pulses, specialty crops, livestock, cattle, bison, sheep and goats, and honey. .
The Advance Payments Program is a federal loan program administered by the CCGA.