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 2019 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.
On May 1, 2019 Agriculture & Agri-Food Minister Marie- Claude Bibeau announced that the Government of Canada was implementing new regulations to strengthen the Advance Payments Program. These new regulations were formally announced in a press release June 3, 2019.
The amendments made to the Agricultural Marketing Programs Regulations increase loan limits from $400,000 to $1,000,000 for all eligible producers on a permanent basis. Unfortunately the interest free portion of loans remains capped at $100,000 with the exception of canola advances for the 2019 program year only. Eligible producers will be able to apply for the new amounts by mid June with actual advances expected to be issued beginning June 26, 2019. Any producers who do not qualify or do not wish to exceed their current advance payment limits (400k or less) can apply at anytime.
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 2018 (but are subject to change upon direction from the Board of Directors of the PEIFA).
Approved producers will be required to invest 5% on all amounts over $100,000; interest charged at rate of Prime – 0.75 %) 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. Please keep in mind all repayments are applied towards interest free portion of the advance first and with increased limits available comes increased scrutiny in following administrative obligations (ie repayment from proceeds of sale of crop, crop insurance payments, proof of sales report accompanying payment etc).
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. Federation members receive a discounted fee with proof of membership as of December 31, 2018.
Advances up to 25K 200+55 (member) 250+55 (non member)
Advances 25K-100K 360+55 (member) 460+55 (non member)
Advances 100K-400K 565+55 (member) 665+55 (non member)
Advances 400K-1M 1000+55 (member) 1200+55 (non member)
Approved producers will also be charged fees associated with delivering this program as well if necessary (ie Crop Inspection fees, credit verification etc.)”
For more information please contact either Tim Seeber or Andrew Wood at 902-368-7289.