The Canadian Canola Growers Association (CCGA) is making changes to its Cash Advance Program this year.
“For the 2020 program year CCGA has eliminated the administration fee, which was previously set at $50 per applicant,” said CCGA President & CEO Rick White. “In addition, farmers who take advantage of the interest-bearing benefits of an Advance Payments Program cash advance offered through CCGA will see a further reduction in the interest rate to prime less 0.75%.”
The Advance Payments Program is a federal program administered by CCGA. Under the program, the Government of Canada provides the loan guarantee, funds the interest-free portion of advances and helps to make low interest rates on the remainder for Canadian producers.
Through CCGA, farmers can access advances on over 50 field crop and livestock commodities, as well as honey. Farmers can apply for a cash advance of up to $100,000 interest-free and to a maximum of $1,000,000. The interest-bearing portion is charged an interest rate of prime less 0.75%.
“Beginning today, farmers wanting to get a jump start on their spring cash advance can submit their 2020 application to our office,” said Dave Gallant, CCGA Director of Finance and Operations. “By applying in March, farmers can have their advance processed during our pre-application period, which means their advance could be approved and advance funds available to them early in April. Our first advances will be issued to farmers on April 1st.”
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