Improvements to the Advance Payments Program
Advance Payments Program – Overview
On February 5th, 2016, the Government of Canada announced the coming into force of amendments to the Agricultural Marketing Programs Regulations and sections of the Agricultural Growth Act. The amendments have resulted in changes to the Advance Payments Program (APP) beginning with the 2016 program year. These changes to the APP will complement the program improvements made in 2015.
Changes introduced in 2016
- New commodities are eligible for advances, including cervid antler velvet, bees intended for market, and breeding cattle, hogs, sheep and goats intended for market.
- More options to secure your APP advance, which may increase the advance amount you are eligible to receive under the program.
- Additional flexibility in how you can repay your advance.
- Alternate guarantors for large corporations, co-operatives or subsidiary companies in lieu of each individual in the organization providing a personal guarantee.
Changes introduced in 2015
- Administrators have the option of offering advances on all commodities, which means you may be able to receive advances for all your commodities through one application with a single administrator.
- To be eligible for an advance, you will no longer need to be principally occupied in farming.
- New repayment schedule in line with the perishable date of non-storable products thereby avoiding the need for proof of sale.
- Repay your advances without penalty if you decide to wait to market the commodity until conditions are more favourable.
- Repay your advances without penalty if your agricultural product becomes unmarketable through no fault of your own.
Changes were made to the Farm Debt Mediation Act to allow the Minister to participate in mediation under the Act as a guarantor of the APP advance. For producers this means the right people at the table to negotiate repayment arrangements, making it easier for producers to resolve their situation.
For more information on the changes to the program, please contact one of our Advance Payments Program Administrators.
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