Features of the Advance Payment Program
- The cash advance “rate” paid to producers is based on the average market price of the grain estimated by Agriculture Canada that will be payable to producers over the crop year. The rate is limited to no more than 50% of the estimated value.
- The maximum cash advance available to each producer is $400,000. The first $100,000 is interest free.
- The “production period” for APP is 18 months and generally runs from April to September of the following year. This means producers have a maximum of 18 months to repay their cash advance.
- Producers repay cash advances as their grain is sold. The advance program is repaid in full before the producer receives any payments for grain sold.