Producers
Q. Where do I get an application form from?
A. In order to apply for an advance you must be a member of a recognized
producer organization. Please refer to Participating
Organizations on this website to locate a producer organization
near you that represents the type of crop that you are involved
in. It should be noted that there is certain criteria that must
be met in order to be eligible for an advance. These requirements
can be discussed with your producer organization.
Q. Is there a limit on the amount of advance that I could receive?
A. Yes. The maximum advance is $250,000 to an eligible producer, while the maximum amount interest-free is $50,000.
Q. Is this program new?
A. No. The Agricultural Marketing Programs Act amalgamated the
Advance Payments for Crops Act (APCA), the Prairie Grain Advance
Payments Act (PGAPA) and the Agricultural Products Cooperative Marketing
Act (APCMA) and the Cash Flow Enhancement Program (CFEP). These
Programs served canadian producers for over 15 years.
Q. How do I repay my advance?
A. The advance is repaid as the crop is sold, depending on the producer organization, the producer may be responsible to
repay the advance directly to the organization. In some cases, if a buyer agreement is in place, the producer organization
may be responsible to collect the money directly from buyers.
Q. How long do I have to repay my advance?
A. The advance must be repaid within a crop year. A crop year is up to 365 days and is defined in the agreement between
the Department and your producer organization.
Q. How is the advance amount determined?
A. In the agreement between AAFC and the producer organization an advance rate
is determined for each crop involved. The advance rate cannot exceed
50% of the anticipated average farm gate price for that crop year.
To make the calculation, the producer organization will multiply
the advance rate by the amount of crop that the producer has in
storage.
Example Crop: Potato
- 1. Advance Rate: $2.00/cwt
- 2. Amount of crop in storage = 20 000 cwt
- 3. Eligible amount for an advance = $2.00 X 20 000 cwt = $40,000
