“Farmers who take advantage of a cash advance can realize significant savings on their borrowing costs,” Gallant said.
The first $100,000 of an advance is interest free and the remaining portion is billed at prime less 0.75%. Producers could see an interest savings of several thousand dollars to nearly $20,000, depending on the value of the advance and interest rates.
Gallant said one of the big changes farmers will see this year is an increase in commodity advance rates as a result of rising commodity market values. The 2022 advance rate per tonne for wheat is up $34/tonne, and for canola, up $111/tonne from 2021 rates.
“That means for the same number of acres on the same crops, farmers will have access to more advances,” he said.
The CCGA has operated the cash advance program for 38 years. Chairman and CEO Rick White said that during this time they have worked with the government to make the APP work better for farmers, including increasing limits and simplifying paperwork processes .
“We are focused on adding value for farmers,” White said.
CCGA was the first administrator to eliminate administration fees and reduce interest rates to the current level of prime minus 0.75%.
White said that each year the CCGA has an early application period which began this year on Feb. 9.
“The first debut date we’ve ever had,” White said.
Farmers can access advances on more than 50 commodities, including field crops, large and small livestock, organic crops and livestock, and honey.
First-time applicants are encouraged to contact the CCGA who can provide assistance in the process. For many candidates, it only takes 15-20 minutes.
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