Advance Payment Program
The Federation of Agriculture is pleased to announce they have once again been approved by AAFC to be able to offer the 2014 Advance Payment Program to eligible producers to assist them with working capital in order to raise live-stock or plant, harvest and market their crops effectively. All funds received under this program are repayable within the time frame as established for the production period.
This program is offered under the guidelines and directions as stated by Agriculture & Agri-Foods Canada.
The following conditions have been established for the operation and delivery of this lending program and are the same as they were in 2013 (but are subject to change upon direction from the Board of Directors of the PEIFA).
The Government of Canada provides a 99% guarantee to all monies advanced under this program for the current production year.
Approved producers will be required to invest 1% of approved amount up to $100,000 (interest free portion of the program) and 5% on all amounts over $100,000; interest charged at rate of Prime – 0.5 %) to a trust account administered by the Federation. The Federation shall hold this money in trust and use it to pay the interest portion monthly until such time as the producer has repaid the net amount received, or in the case of default, at such time as determined by the program operating guidelines.
Approved producers under this program shall pay an administration fee dependent on the level of funding they are eligible for and/or choose to receive, the tiered fee structure is as follows:
Approval of $1 – $25,000 – admin fee of $250 + $50 registration fee
Approval of $25,001- $100,000 – admin fee of $450 + $50 registration fee
Approval of $100,001- $400,000 – admin fee of $650 + $50 registration fee
Federation members receive discounted fees of $50 (loans under $25,000) or $100 (loans over $25,000), ie, fees the same as last year.
Approved producers will also be charged fees associated with delivering this program as well if necessary (ie Crop Inspection fees, credit verification etc.)”
The maximum amount advanced to one farm entity (individual producer, partnership or corporation) shall not exceed $400,000.
PEIFA will administer this program on behalf of crop and livestock producers within the province of Prince Edward Island.
The program will be administered by Tim Seeber and Andrew Wood as it was last year. For more information please contact either Mr. Seeber or Mr. Wood at 902-368-7289.
The PEIFA looks forward to working with producers during these trying financial times and hopes this program can be beneficial to the producers of Prince Edward Island.