Advance Payments Program: Step 1. What this program offers

Increase to the APP advance limits for 2019

Amendments made to the Agricultural Marketing Programs Regulations increase loan limits from $400,000 to $1 million for all producers on a permanent basis, and increase the interest-free portion of loans on canola advances from $100,000 to $500,000 in the 2019 program year under the APP. Producers of all other commodities can continue to receive up to $100,000 interest-free.

Learn more:
Government of Canada Implements New Regulations to Enhance Advance Payments Program

Fact Sheet

Print this fact sheet for use at events and meetings to promote the program.

Step 1. What this program offers

The Advance Payments Program (APP) is a federal loan guarantee program which provides agricultural producers with easy access to low-interest cash advances.

Under the program, producers can access up to $1,000,000 per program year in advances based on the value of their agricultural product, with the Government of Canada paying the interest on the first $100,000 advanced to a producer. Advances are repaid as the producer sells their agricultural product, with up to 18 months to fully repay the advance for most commodities (up to 24 months for cattle and bison).

As a producer, an APP advance can help you to meet your financial needs, such as farm input costs, immediate financial obligations, and product marketing costs. It can also allow you to make the decision to sell your agricultural products based on market conditions rather than the need for cash flow.

APP advances are available through 35 participating Producer Organizations, that is, APP Administrators, across Canada.

How much you can receive

Under the Advance Payments Program (APP), you may be eligible to receive up to $1,000,000 per program year, with:

Your cash advance is calculated based on up to 50% of the anticipated value of the eligible agricultural products that you are producing or have in storage. You cannot have more than $1,000,000 in advances outstanding at any one time.

What you need as security for an advance

Your advance must be secured. The security required will depend on the type and state of the agricultural product at the time you apply.

The advance amount you are eligible to receive will be limited by the level of security you are able to provide.

If you are declared in default, the security, including assigned program payments, may be used to pay off your advance.

For more information on acceptable forms of security, you should contact your Advance Payment Program Administrators.

Date modified: