Today, Canadian Canola Growers Association (CCGA) issued the first cash advances for the 2024 Advance Payments Program (APP), putting over $225 million of working capital financing into over 1,400 farming operations spanning Western Canada.
“We started accepting applications for 2024 cash advances in February, and since then our team has been focused on improving our responsiveness so farmers can take maximum advantage of the benefits a cash advance offers them," says Dave Gallant, Vice-President, Finance & APP Operations at CCGA. “We're excited to get the 2024 program underway and look forward to many months of serving the cash flow needs of Western Canadian farmers."
CCGA has four decades of experience providing cash advances to farmers across Western Canada. Through CCGA, farmers can access advances on over 50 commodities including crops, livestock, organic commodities, and honey. Farmers can apply for a cash advance of up to $250,000 interest-free to a maximum of $1,000,000. The interest-bearing portion is charged an interest rate of prime less 0.25%.
“In addition to providing much needed cash flow during the spring, farmers who take advantage of a cash advance can see significant savings on their borrowing costs," says Gallant. “When you consider the interest-free and low-interest benefits of a cash advance, the savings on interest costs can range from $18,000 to $30,000 per year, depending on the size of the advance and comparative interest rates."
Farmers considering a cash advance for the first time are encouraged to call CCGA at 1-866-745-2256 to apply over the phone. Existing customers can use the self-serve options available from their online account, apply over the phone, or download an application form at ccga.ca.
The Advance Payments Program is a federal loan program administered by CCGA. It offers Canadian farmers marketing flexibility through interest-free and low-interest cash advances.
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