News release
PRODUCERS OF WHEAT, LENTILS AND HONEY GIVEN MORE TIME TO REPAY CASH ADVANCES
OTTAWA, Ontario, July 28, 2006 - The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food Canada and Minister for the Canadian Wheat Board today announced that he has approved requests from several commodity organizations for a stay of default on repayment of cash advances. A stay of default provides producers with more time to repay their advance without being charged an interest penalty.
"This new government recognizes that some producers are under financial stress because of circumstances they cannot control," said Minister Strahl."I am pleased to approve the recommendation of commodity organizations to extend the deadline for repayment of cash advances so that producers have more time to repay their cash advance without penalties being applied."
The Minister has approved the following requests:
- from the Canadian Wheat Board for wheat and durum,
- from the Canadian Canola Association for lentils, and,
- from the Manitoba Beekeepers’ Association, the Saskatchewan Beekeepers Association and the Alberta Beekeepers Association for honey.
The measure applies to cash advances taken during the 2005-2006 crop year. Producers of these commodities will have until January 31, 2007 to repay their advances without being charged an interest penalty. Producers also have the option to transfer their advance into the 2006-2007 Advance Payments Program crop year before the deadline.
Agriculture and Agri-Food Canada operates three cash advance programs, the Advance Payments Program (APP) for fall advances, the Spring Credit Advance Program (SCAP) for spring advances and the Enhanced Spring Credit Advance Program (ESCAP). The three programs provide producers with cash advances, secured by Production Insurance or the value of harvested crops, at optimal times in the production cycle.
A portion of the advances under the APP is interest free but an interest penalty will be charged if the loans are not repaid by the deadline. If commodity groups make a request due to special circumstances, the Minister can grant a stay of default. A stay of default will be considered if there is a lack of market opportunities for producers to sell their commodity.
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For more information, media can contact:
Media Relations
Agriculture and Agri-Food Canada
(613) 759-7972
1-866-345-7972
Jeff Howard
Press Secretary
Minister Strahl's office
613-759-1059
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