How much funding can be received?

Funds up to 1000000% of admissible expenses.

What is the deadline to apply?

The deadline to apply is not specified.

Advance Payments Program (Agriculture)

Canada

Cash advances for farmers

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Loans and Capital investments

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Agriculture, forestry, fishing and hunting

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Agriculture and Agri-Food Canada (AAFC)
Government of Canada

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Get a low-interest, repayable cash advance of up to $1 million, with interest on the first $350,000 paid by the federal government. The advance covers 50% of the expected market value of the agricultural products you will produce or have in storage for th

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The following are some eligible activities for this grant:

Production of eligible agricultural products
Storage of eligible agricultural products
Repayment as agricultural products are sold
Marketing agricultural products based on market conditions

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$250,000

Calgary

Purchase of modern farming equipment to increase yield efficiency.

$175,000

Vancouver

Expansion of cold storage facilities for perishable agricultural products.

$75,000

Toronto

Organic vegetable production and marketing for local communities.

$50,000

Ottawa

Development of a comprehensive marketing campaign for honey products.

$150,000

Montreal

Implementation of advanced hydroponic systems for year-round vegetable farming.

$100,000

Halifax

Introduction of eco-friendly packaging for dairy products to reduce plastic waste.

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Eligibility criteria:

Producers of eligible agricultural products in Canada
Must have the appropriate security for the advance
Advance must be used for agricultural purposes
Must work with one of the 27 participating APP Administrators
Meet program-specific requirements set by Agriculture and Agri-Food Canada

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Eligible types of companies for this grant include agricultural producers in Canada who require cash advances to support their operations. The program is designed to assist producers with easy access to low-cost cash advances.

Agricultural producers in Canada

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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

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Eligible expenses for this grant may include costs related to agricultural production, storage, and marketing of agricultural products. Specific eligible expenses can vary depending on the type of agricultural operation.

Agricultural production expenses
Storage costs for eligible agricultural products
Marketing expenses related to selling agricultural products
Other operational costs directly associated with the production of eligible agricultural products

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There are evaluation and selection criteria for this grant.

Producers must meet eligibility requirements
Security must be provided for the advance
The value of the advance may be limited by the provided security
Repayment terms and conditions must be met
Compliance with program guidelines and regulations

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Step 1: Check Eligibility
- Determine if you are an agricultural producer eligible for the Advance Payments Program.
- Ensure your agricultural products meet the criteria for the program.
Step 2: Contact APP Administrator
- Reach out to one of the 27 participating producer organizations, APP Administrators, across Canada.
- Inquire about the application process and gather necessary information.
Step 3: Submit Application
- Complete the application form provided by the APP Administrator.
- Prepare required documentation and submit your application within the specified timeframe.
Step 4: Await Approval
- Wait for the APP Administrator to process your application and determine your eligibility.
- Be prepared to provide additional information if requested.
Step 5: Receive Advance
- If approved, you will receive the cash advance based on the value of your eligible agricultural products.
- Start repaying the advance as you sell your agricultural products within the designated repayment period.

Apply to this program

Canadian Advance Payments Program (APP)

Canadian Advance Payments Program Overview

The Canadian Advance Payments Program (APP) is a federal loan guarantee initiative that offers agricultural producers low-cost cash advances of up to $1,000,000 per program year. The government covers the interest on the first $100,000 (or the first $250,000 for 2024), providing producers with financial support until they sell their agricultural products.

Eligibility and Application Process

To be eligible for the APP, producers must secure their advances with the agricultural products in question. Additional security may be required based on the type of product. Producers can apply through one of the 27 participating APP Administrators across Canada.

Program Benefits and Repayment

The APP advances help agricultural producers with cash flow, giving them flexibility in marketing their products based on market conditions. Producers can repay the advances as they sell their products, with most commodities allowing up to 18 months for full repayment (24 months for cattle and bison).

Security Requirements and Oversight

The APP requires security for the advances, which can include eligible business risk management programs and other acceptable forms of collateral. Agriculture and Agri-Food Canada's Financial Guarantee Programs Division oversees the program to ensure it reduces costs for producers, benefits Canadian producers, and complies with relevant regulations.

Conclusion

The Canadian Advance Payments Program is a valuable resource for agricultural producers in need of financial assistance and cash flow support. By offering low-cost advances and covering interest on a portion of the advance, the program helps producers manage their expenses and marketing strategies efficiently.