Blog: The Wheat Sheaf
Agricultural Financial Supports Announced by Federal/Provincial Government
Advanced Payment Programs
- All eligible farmers who have outstanding Advance Payments Program (APP) loans due on or before April 30, 2020 will receive a Stay of Default, allowing them an additional six months to repay their APP loans.
- FarmCash customers with outstanding 2018 loans that were due March 31 now have a Stay of Default extended to September 30, 2020. This applies to all 2018 advances on grains, oilseeds, pulses, cattle and bison.
- The Stay of Default allows FarmCash customers flexibility to repay their 2018 APP loans with an extension of six months before going into Default.
- Producers with outstanding APP advances, including interest-free portions, can apply for an additional $100,000 interest-free under the 2020-21 program year of the APP, given the total APP advances do not exceed the $1 million maximum loan limit.
- FarmCash is now accepting applications for the spring advance. Farmers can apply today to receive funds as early as April 1 at our reduced interest rate of TD prime minus 0.75 per cent. Visit farmcashadvance.com to learn more and to apply.
Farm Credit Canada
To ensure you can remain focused on business-critical functions rather than worrying about how to access funds to keep operating through this challenging period, effective immediately, you can apply for the following options:
- A deferral of principal and interest payments for six months; or
- A deferral of principal payments up to 12 months (both will extend the amortization at the end)
- Access to an additional credit line, secured by general security agreements (in place for the next 24 months) Available to both members and non-members.
Outstanding balances may be able to be transitioned to input credit line. These products are intended to be more flexible than existing products. Intended to help with shorter term bridge financing.
Farmers should discuss outstanding balances and their other financing options with their local FCC office or by calling their Customer Service Centre at 1-888-332-330.
- AFSC is expected to be receiving an additional $74.7 million to help cover insurance claims and pay income support for producers.
- Grain Growers of Canada, with the support of our commissions, have called on government to provide immediate support to farmers by:
- Providing an immediate injection of a minimum of 5% of farmers’ 2018 Allowable Net Sales (ANS) into AgriInvest accounts
- Improving the predictability, bankability and timeliness of the AgriStablity program for the 2020 program year by removing the Reference Margin Limiting and increasing the trigger to 85%