An Advance Payments Program (APP) cash advance can make a big difference for farmers this year, according to Canadian Canola Growers Association (CCGA) Director of Finance & Operations Dave Gallant.

The APP cash advance from CCGA is a low-interest financing tool that is specifically designed for farmers’ needs. Farmers can borrow up to $1,000,000 on more than 50 commodities, with the first $100,000 available interest-free and anything over that at prime less 0.75 percent.

“With the Bank of Canada projecting rising 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, then the blended interest rate still works out to well below prime.”

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

An APP cash advance can be used any time of the year and has no limitations on how farmers can put it to work on their farm. Farmers can use the short-term financing for input purchases, maintenance and repairs, wages, or for bringing cash flow into their operation while they take the time they need to execute their marketing strategy — whatever makes sense for their farm.

CCGA has nearly 40 years of experience administering the cash advance program and works with thousands of farmers every year. First-time applicants are walked through the steps to apply over the phone, and previous customers can call or apply online. Repayments are made directly through authorized buyers like grain elevators, through the farmer’s financial institution, or by mailing a cheque.

Farmers should consider how an APP cash advance from CCGA could fit into their financial toolkit this year. For more information, please visit ccga.ca/cash-advance.

The Advance Payments Program is a federal loan program administered by CCGA. It offers Canadian farmers marketing flexibility through interest-free and low-interest cash advances.