Business & Policy
GoC announces interest relief program for ag producers
June 23, 2022 By Potatoes in Canada
Minister of agriculture and agri-food Marie-Claude Bibeau announced that the interest-free portion of the advance payments program will increase from $100,000 to $250,000 for the 2022 and 2023 program years. Participating producers will save an average of $5,500 in interest costs over the next two years. This change will represent total savings of up to $61 million over two years for approximately 11,000 producers.
The increase was made in recognition of current significant challenges such as rising input costs such as fuel, fertilizer and seed. The program is designed to provide cash advances of up to $1 million against the expected value of their commodities. The increase will give eligible producers access to additional cash flow over the next two growing seasons.
This will ensure they can maintain production until they are able to sell their products in the fall or winter. The interest savings and access to cash flow are both critical in helping Canadian producers continue to contribute to global food security.
“This year, agricultural producers are facing significant increases in input prices. By suspending interest on the first $250,000 of their advance payments program loans, we are providing relief to those women and men who work so hard to feed us and the world in these uncertain times,” said Bibeau in a statement.
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