Advance Payments Program (Agriculture)

Who is eligible?

Eligible applicants for the Advance Payments Program (APP) include Canadian agricultural producers who are involved in the production or storage of eligible agricultural products. These producers must be able to provide the required security for the advance, such as the agricultural product itself or the potential proceeds from an eligible business risk management program. Furthermore, producers need to work with one of the 27 participating producer organizations (APP Administrators) across Canada to access the program.

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

The Advance Payments Program offers financial assistance to agricultural producers, facilitating access to low-cost cash advances. This is critical for ensuring that producers can manage their cash flow and make informed marketing decisions based on market conditions rather than financial necessity.

• Access up to $1,000,000 in total advances per program year based on the value of eligible agricultural products.
• Interest-free cash advances on the first $250,000 for 2024 to help manage costs until product sale.
• Repayment structured around the sale of agricultural products, offering up to 18 months for most commodities, and up to 24 months for cattle and bison.
• Flexibility to sell agricultural products based on market conditions, not immediate cash needs.
• Participation through one of 27 producer organizations acting as APP Administrators across Canada.
• Requirement to provide eligible security for an advance, ensuring financial safeguards are maintained.

Eligible geographic areas

This grant is available to agricultural producers across Canada as the program is administered by federal authorities and 27 participating producer organizations nationwide.

• Producers and organizations throughout Canada.

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.