Starting March 5, farmers wanting to get a jump start on their spring cash advance can submit their 2019 Advance Payments Program application form to Canadian Canola Growers Association (CCGA). New this year, farmers who take out an interest-bearing advance will benefit from a reduced interest rate below prime. CCGA has also expanded its advance offering with four new organic grains including wheat, oats, peas and flax.
“Farmers anxious to complete their advance application before seeding have been contacting us,” says Rick White, CEO of CCGA. “Having our application form ready well in advance of the April 1st program start date is just one way our team is enhancing cash advance services for Western Canadian farmers.”
In the past two years, CCGA has implemented several important changes to its cash advance services, and in 2019, the organization is taking another step to create even more value for farmers. “We are passing on the benefits from our operational efficiencies directly back to farmers who use the program,” says White. “Beginning this April, farmers who have an interest-bearing advance with CCGA, will benefit from an interest rate of prime minus 0.5%.”
Through CCGA, farmers can access advances on nearly 50 field crop and livestock commodities. Farmers can apply for a cash advance of up to $100,000 interest-free and an additional $300,000 at prime less 0.5%. Combined, that amounts to $400,000 at a blended interest rate well below prime and considerable borrowing cost savings.
CCGA has implemented several changes that directly benefit farmers who use the program. “Last spring, we reduced the program administration fee, and in September we launched a new online account system that was designed with direct input from our customers,” says Dave Gallant, Director of Finance and Operations at CCGA.
“By applying in March, farmers can have their advance processed during our pre-application period, which means their advance could be approved and advance funds available to them early in April,” says Gallant. “Our first advances will be issued to farmers on Monday, April 1st.”
Farmers wanting to apply for a cash advance are encouraged to call CCGA’s Winnipeg office at 1-866-745-2256 to apply over the telephone. “Our experienced team make it easy for new customers to apply,” says Gallant. Farmers can also download an application form at CCGA’s website or existing customers can soon use the new online application system directly accessible from their online account.
For farmers who have short-term financing needs, CCGA will continue processing applications for the 2018-19 cash advance program through March. The final date CCGA can issue an advance under the current program is March 31, 2019.
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.