Advance Payments Program (Agriculture)

• Valid government-issued photo identification for first-time applicants.
• Direct deposit information, if funds are to be deposited electronically.
• Insurance premium invoice and schedule.
• Priority agreements from secured creditors.
• Completed application and repayment agreement forms.

Who is eligible?

• Agricultural producers.
• Sole proprietors, partnerships, corporations and cooperatives.

Who is not eligible

There are specific types of companies that are not eligible for this grant. They include:

• Companies that do not produce or store eligible agricultural products
• Non-agricultural businesses
• Companies with outstanding defaults on previous APP advances

Eligible expenses

• Cash advances based on eligible agricultural products produced or held in storage.
• Financing support for working capital needs until products are sold.

Eligible geographic areas

• Canada

• Applications are reviewed through participating APP Administrators.
• Approvals depend on the administrator’s assessment of the application and required security.
• Funds are issued after approval by the administrator.
• The advance must be repaid as products are sold, under the program’s repayment terms.

Additional information regarding the Advance Payments Program:

• There are 27 participating APP Administrators across Canada, responsible for administering the advances to producers.
• The program aims to reduce costs to producers and use of government funds by providing a financial guarantee and paying the interest on a portion of the advance.
• Advance Payments are calculated based on up to 50% of the anticipated market value of eligible agricultural products.
• Security must always include the agricultural products on which the advance is based; additional security may be required for non-storable products or animals.
• The program provides flexibility by allowing producers to sell based on market conditions rather than immediate financial needs.