The Advance Payments Program (APP) is a federal loan guarantee program. It offers Canadian farmers flexibility through interest-free and low interest cash advances.
This means improved cash flow throughout the year and better opportunities for marketing their agricultural products.
APP provides producers with a cash advance on the value of their agricultural products during a specified period. By improving their cash flow throughout the year, the APP helps crop and livestock producers meet their financial obligations and benefit from the best market conditions.
Under the APP, the federal government guarantees repayment of cash advances issued to farmers by the producer organization. These guarantees help the producer organization borrow money from financial institutions at lower interest rates and issue producers a cash advance on the anticipated value of their farm product that is being produced and/or that is in storage.
- Up to $250,000 Interest-Free (2022 and 2023 program years)
- An additional $900,000 available at Prime Lending Rate
- Advance to be repaid as product sold
- Producers must participate in Production Insurance, AgriStabilty, or use Storable Inventory
- Producer is responsible for paying insurance premiums by appropriate deadlines
The Advance Payments Program is administered by the Agriculture Credit Corporation.