Newsroom
2006
CWB applauds changes to cash advance programs
May 19, 2006
Winnipeg - The CWB says changes to the federal government's cash advance programs will help farmers.
CWB chair Ken Ritter, who farms near Kindersley, Saskatchewan, said the new rules reflect changes that have occurred within the farm sector.
"Our cost of production has risen dramatically as input costs have risen," Ritter said. "Farms have also become much larger, which means there's been a real need for both a larger interest-free portion and a higher overall cap for cash advances."
The federal government announced yesterday that the interest-free portion of cash advances will immediately be doubled to $100,000 from $50,000 and the repayment period for loans has been extended by nine months to September 30, 2007, under an Enhanced Spring Credit Advance Program.
In addition, legislation introduced yesterday in Ottawa by the government proposes a number of longer-term changes, including doubling the interest-free portion of the advance to $100,000 and increasing the overall limit for advances to $400,000 from $250,000.
"We've requested very similar changes in the past, and we support this legislative initiative by the new government," Ritter said.
This past fall, during a submission to the House of Commons Standing Committee on Finance, Ritter and elected director Bill Toews called for changes to the cash advance program to bring immediate relief to the farm income crisis.
Ritter also applauded the changes proposed to make cash advances more user-friendly. Under the legislation the spring and fall cash advances will be combined into a single program.
Controlled by western Canadian farmers, the CWB is the largest wheat and barley marketer in the world. One of Canada's biggest exporters, the Winnipeg-based company sells grain to more than 70 countries and returns all sales revenue, less marketing costs, to Prairie farmers.
For more information, please contact:
Heather Frayne
Communications Coordinator
Tel: (204) 984-0190