CCGA Sees Response Spike on Day One of Advance Payments Program – DiscoverWestman.com

The Canadian Canola Growers Association (CCGA) says it issued more than $275 million in cash advances under the Advance Payments Program on the first day of the program (April 1) to more than 1,500 western Canadian farmers.

“With rising input prices and sloping interest rates, we’re seeing strong adoption of the spring program,” said Dave Gallant, CCGA’s director of finance and operations. “Farmers who take advantage of a cash advance can realize significant savings on their borrowing costs. The first $100,000 of an advance is interest free and the remaining portion is billed at prime less 0.75%, so interest cost savings can range from several thousand dollars to nearly $20,000. $, depending on the value of the advance and comparative interest rates.

He notes that one significant change farmers will see this year is an increase in commodity advance rates as a result of rising commodity market values. For example, the 2022 per tonne advance rate for wheat is up $34/tonne, and for canola, up $111/tonne from 2021 rates. This means that for the same number of acres on the same crops, farmers will have access to more advances.

Through the CCGA, farmers can access advances on more than 50 commodities, including field crops, large and small livestock, organic crops and livestock, and honey.

Producers can request a cash advance of up to $100,000 without interest and up to a maximum of $1,000,000. The interest-bearing portion is subject to prime interest less 0.75%.