2006-06-24
Author: GWR Ag Network

Legislation to improve cash advance programs for producers received Royal Assent this week.  The Federal Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, Chuck Strahl, welcomed the news.  He says the passage of Bill C-15 is an important first step, and shows government’s commitment to providing farmers with programs to help them grow and prosper in the years ahead.  Cash advance programs provide spring and fall cash advances to producers, a portion of which is interest-free, to meet high cash flow requirements at spring seeding and fall harvest.  Bill C-15 was introduced on May 18, 2006 and amends the Agricultural Marketing Programs Act (AMPA) to: 

  • consolidate the Advance Payments Program (fall) and the Spring Credit Advance Program, as a single program under the AMPA; 
  • expand the coverage to include livestock and more crops;  
  • increase the overall limit on advances from $250,000 to $400,000; and  
  • increase the amount of interest-free advances from $50,000 to $100,000. 
  • It is anticipated that the new program will be available in early 2007.