By Alice McFarlane

Cash advance interest-free limit to increase

Mar 8, 2025 | 5:35 PM

The interest-free limit under the Advance Payments Program (APP) will be set at $250,000 for 2025.

Producers had been protesting as the initial announcement made earlier this year indicated the interest-free limit would be set at $100,000 which was at 2021 levels.

In making the announcement, Agriculture and Agri-Food Minister Lawrence MacAulay said this is the portion of advances on which the federal government pays the interest on behalf of producers.

For 2025, farmers can apply for up to $1 million in financing, with the interest-free component at $100,000 and the remaining at CCGA’s interest-bearing rate of prime less 0.25 per cent.

The Advance Payments Program gives producers easy access to low-cost cash advances of up to $1 million, based on the expected value of their agricultural product.

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Under the program, producers typically receive the first $100,000 interest-free. The higher limit announced today will result in interest savings for producers while increasing access to cash flow to help cover costs until they sell their products.

MacAulay said raising the interest-free portion of APP will give farmers some extra cash flow and savings as they head into the growing season.

“In the face of different challenges and trade uncertainty, our hardworking producers continue to show their resilience and deliver top-quality products for Canadians, and the world,” MacAulay said.

The program offers marketing flexibility, enabling producers to sell their agricultural products when it is most advantageous, rather than being forced to sell for immediate cash needs, which is especially crucial in times of uncertainty.

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alice.mcfarlane@pattisonmedia.com

On X: @farmnewsNOW