Cash advance adds more value to the farm this spring –


An Advance Payments Program (APP) cash advance can make a big difference for farmers this year, according to Dave Gallant, director of finance and operations for the Canadian Canola Growers Association (CCGA).

CCGA’s APP Cash Advance is a low-interest financing tool specifically designed for the needs of farmers. Farmers can borrow up to $1,000,000 on over 50 commodities, with the first $100,000 available interest-free and any amount above prime minus 0.75%.

“With the Bank of Canada forecasting higher interest rates, a cash advance is more valuable than ever,” says Gallant. “Farmers pay no interest on the first $100,000, and if they borrow more than that, the blended interest rate remains well below prime.”

“This year we are seeing higher advance rates, which means most farmers will qualify for larger loans, even for the same amount of crops or livestock as last year,” he adds. -he. “Crop market values ​​are high, but so are input costs. A cash advance can really help balance cash flow throughout the growing season and beyond.

An APP cash advance can be used any time of the year and has no limit on how farmers can use it on their farm. Farmers can use short-term financing for the purchase of inputs, maintenance and repairs, wages, or to provide cash on their farm while they take the time they need to execute their farming strategy. marketing – whatever makes sense for their farm.

The CCGA has nearly 40 years of experience administering the cash advance program and works with thousands of farmers each year. New applicants are guided through the steps to apply over the phone, and previous clients can call or apply online. Refunds are made directly through authorized purchasers such as grain elevators, through the farmer’s financial institution, or by mailing a check.

Farmers should consider how a CCGA APP cash advance might fit into their financial toolkit this year. For more information, please visit

The Advance Payments Program is a federal loan program administered by the CCGA. It provides Canadian farmers with marketing flexibility through low-interest, no-interest cash advances.

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