The federal authorities is rising the interest-free portion of its Advance Funds Program (APP) from $100,000 to $250,000 for 2022 and 2023.
Agriculture Minister Marie-Claude Bibeau introduced the change to the money advance program on Thursday, June 23.
Agriculture and Agri-Meals Canada says eligible producers will save a median of $5,500 in curiosity prices over the two-year interval — a complete of $61 million for about 11 thousand farms.
The money advance program gives producers with short-term loans of as much as $1 million based mostly on the anticipated worth of their agricultural manufacturing, of which the primary portion in every crop yr is interest-free.
“This yr, agricultural producers are going through important will increase in enter costs. By suspending curiosity on the primary $250,000 of their Advance Funds Program loans, we’re offering reduction to these men and women who work so exhausting to feed us and the world in these unsure occasions,” famous Bibeau.
The change is just not retroactive, so it should apply to current advances as of June 20, 2022.
Bibeau beforehand mentioned the federal government was contemplating taking measures to cut back the impression of the Canadian authorities’s 35 per cent tariffs on fertilizer from Russia and Belarus, however the money advance announcement didn’t consult with the sanctions, as a substitute framing the change as serving to Canadian farmers with money movement to contribute to world meals safety.
The federal government additionally introduced a change to the money advance program in April that permits producers to obtain 100 per cent of their advance up entrance, somewhat than receiving the funds in two instalments earlier than and after seeding.
Final yr, the federal authorities disbursed $2.39 billion in advances to 17,430 producers throughout Canada by way of 30 industry-led associations that administer this system.
Associated: 100% of federal money advances out there up entrance for 2022