The federal government is raising the interest-free portion of the Advance Payments Program will increase from $100,000 to $250,000 for the 2022 and 2023 program years, a June 23 news release said.
The release noted this is due to significant challenges facing Canadian producers, including rising input costs. The change will save approximately 11,000 producers up to $61 million over two years. The program is designed to help producers manage their working capital by providing cash advances of up to $1 million against the expected value of their commodities.
“The change to the program will make the purchase of important inputs such as fuel, fertilizer and seed more affordable for producers. This will ensure they can maintain production until they are able to sell their products in the fall or winter,” the release said.