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Beef Farmers Welcome Continued $250,000 Interest-Free Advance, Call for Permanent Increase
April 1, 2026
The Beef Farmers of Ontario (BFO) welcome the federal government’s decision to maintain the interest-free portion of the Advance Payments Program (APP) at $250,000 for the 2026 program year for all non-canola advances. In Ontario, beef farmers can access the program through the Agricultural Credit Corporation or through BFO under the Ontario Feeder Cattle Loan Guarantee Program.
The Advance Payments Program is a valuable financing tool for beef farmers, providing access to low-interest loans of up to $1 million per year based on the value of their livestock. With the Government of Canada covering the interest on the first $250,000, the program helps reduce borrowing costs while improving cash flow. This is particularly important for younger and expanding farm operations, allowing them to bridge the gap between expenses and income without relying on high-interest credit. It also gives producers greater flexibility on when they market their cattle and supports stronger financial stability and profitability.
In 2021, the interest-free portion of the program was set at $100,000. Since 2022, the interest-free portion has been temporarily increased each year rising to $250,000 and reaching up to $350,000 in 2023. Prior to today’s announcement, it had been scheduled to revert back to $100,000.
“Alongside our partners across agriculture, we continue to call on the federal government to raise the interest-free portion and make it permanent to better support farmers,” explains Jason Leblond, BFO President. “The current $100,000 baseline no longer reflects today’s operating environment, and farm groups have had to repeatedly advocate for temporary increases despite broad recognition of this gap.”
The program is widely used by beef farmers in Ontario. In the 2025 calendar year, 607 farmers accessed just under $93 million in loans through the program under the Feeder Cattle Loan Guarantee Program, which was up 16 per cent from 2024.
In the first nine months of the 2025 program year (April 1 to December 31, 2025), program participants accessed over $83 million under the interest-free component. The average participant had a total interest savings of about $8,000 during this period.
“Effective business risk management programs and financial tools are critical to beef farmers. A permanent interest-free portion of $350,000 under the Advance Payments Program, beginning in the 2027 program year, would improve financial predictability, reduce debt servicing pressures, and better support young and growing farm operations,” says Leblond.
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