Interest

relief – continued from page 1

Quotes

“Agricultural producers continue to face significant financial challenges including high input costs and rising interest rates. This new increase in the interest-free portion of Advance Payments Program loans will generate savings for our farmers so they can maintain production to sustain their livelihoods.”

Quick facts

• On June 23, 2022, Minister Bibeau announced an increase to the interestfree portion of the Advance Payments Program from $100,000 to $250,000 for the 2022 and 2023 program years.

• Budget 2023 proposed $13 million in 2023-24 to Agriculture and Agri-Food Canada to increase the interest-free limit for loans under the Advance Payments Program from $250,000 to $350,000 for the 2023 program year.

• It is estimated that the total government investment resulting from these program changes for both 2022 and 2023 could be around $94.9 million.

• The amendment to the Agricultural Marketing Programs Regulations is not retroactive, meaning the new limit will be applied to existing advances under the 2023 Advance Payments Program as of May 8, 2023, when the regulatory amendment came into force.

• The Advance Payments Program cash advances are calculated based on up to 50% of the anticipated market value of the eligible agricultural products that will be produced or are in storage. The program is delivered through 30 industry-led associations