Winnipeg, MB — Today, on the first day of the 2022 Advance Payments Program (APP), Canadian Canola Growers Association (CCGA) issued over $275 million in cash advances, providing more than 1,500 farmers across Western Canada with cash flow as they prepare for the growing season.
“With the price of inputs rising, and interest rates on an incline, we're seeing robust uptake of the spring program," says Dave Gallant, Director of Finance and Operations at CCGA. “Farmers who take advantage of a cash advance can see significant savings on their borrowing costs," says Gallant.
“The first $100,000 of an advance is interest-free and the remaining portion is charged prime less 0.75%, so savings on interest costs can range from several thousand dollars to nearly $20,000, depending on the value of the advance and comparative interest rates."
“A significant change that farmers will see this year is an increase in the commodity advance rates resulting from higher commodity market values," says Gallant. For example, the 2022 advance rate per tonne for wheat is up $34/tonne, and for canola up $111/tonne over 2021 rates. “This means for the same number of acres on the same crops, farmers will have access to more advance funds."
CCGA's longstanding track record of serving farmers includes 38 years of experience providing cash advances to farmers across Western Canada. “Over that time, CCGA has been at the forefront of working with government to get the APP working better for farmers, including increased limits and simplified paperwork processes," says Rick White, President & CEO at CCGA. “We're focused on adding value for farmers."
CCGA was the first administrator to eliminate administration fees and reduce interest-bearing rates to CCGA's current level of prime less 0.75%. In addition, every year CCGA has an early application period which this year began on February 9th. “The earliest start date we've ever had," says White.
Through CCGA, farmers can access advances on over 50 commodities including field crops, large and small livestock, organic crops and livestock, and honey. Farmers can apply for a cash advance of up to $100,000 interest-free and to a maximum of $1,000,000. The interest-bearing portion is charged an interest rate of prime less 0.75%.
First-time applicants will benefit from the added support they receive through CCGA's contact centre and are encouraged to call CCGA at 1-866-745-2256 to apply over the telephone. For many applicants it only takes 15-20 minutes. Existing customers can use the self-serve options available from their online account or can apply over the telephone. Farmers can also download an application form.
The Advance Payments Program is a federal loan program administered by CCGA. It offers Canadian farmers marketing flexibility through interest-free and low interest cash advances.
Canadian Canola Growers Association (CCGA) represents canola farmers on national and international issues, policies and programs that impact farm profitability, and has been administrator of the Government of Canada's Advance Payments Program since 1984. For more information visit www.ccga.ca or follow CCGA on Twitter @ccga_ca.