The federal authorities is growing the interest-free portion of its Advance Payments Program (APP) from $100,000 to $250,000 for 2022 and 2023.
Agriculture Minister Marie-Claude Bibeau introduced the change to the money advance program on Thursday, June 23.
Agriculture and Agri-Food Canada says eligible producers will save a median of $5,500 in curiosity prices over the two-year interval — a complete of $61 million for roughly 11 thousand farms.
The money advance program gives producers with short-term loans of up to $1 million based mostly on the anticipated worth of their agricultural manufacturing, of which the primary portion in every crop 12 months is interest-free.
“This 12 months, agricultural producers are going through important will increase in enter costs. By suspending curiosity on the primary $250,000 of their Advance Payments Program loans, we’re offering aid to these ladies and men who work so onerous to feed us and the world in these unsure occasions,” famous Bibeau.
The change shouldn’t be retroactive, so it would apply to current advances as of June 20, 2022.
Bibeau previously stated the federal government was contemplating taking measures to scale back the impression of the Canadian authorities’s 35 per cent tariffs on fertilizer from Russia and Belarus, however the money advance announcement didn’t refer to the sanctions, as an alternative framing the change as serving to Canadian farmers with money move to contribute to international meals safety.
The authorities additionally introduced a change to the money advance program in April that enables producers to obtain 100 per cent of their advance up entrance, quite than receiving the funds in two instalments earlier than and after seeding.
Last 12 months, the federal authorities disbursed $2.39 billion in advances to 17,430 producers throughout Canada by way of 30 industry-led associations that administer this system.