Prime Minister Justin Trudeau has announced $5 billion dollars in additional lending capacity for Farm Credit Canada.
“For farmers and people across the agri-food business I know these are hard times, too. So we're also opening up, $5 billion in additional lending capacity. Starting today, farmers and producers can apply through Farm Credit Canada for the support they need to keep food growing and get it onto our tables. On that note, I want to say thank you to people, right across the entire food sector, day in and day out, you grow, transport and stock the food that feed our families.”
Agriculture Minister Marie Claude Bibeau says they recognize the need for assistance at this time.
“This injection of credit will permit FCC to help farm and food business owners on a case by case basis with potential deferrals of the principal, and or interest portions of their loans, or access to an additional credit line.
She notes they are also have made changes for producers enrolled in the Advance Payments Program.
“All eligible farmers who have a payment coming due for the Advance Payments Program Loan deadline on April 30, or earlier will now receive a state of default for an additional six months. This represents a total of $173 million in deferred loans.”
She says the two new measures will help keep money in producer processor pockets when they need it the most.
Customers facing financial pressure are encouraged to contact their FCC relationship manager or the FCC Customer Service Centre at 1-888-332-3301 to discuss their individual situation and options.
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Prime Minister announces support for farmers and agri-food businesses under Canada’s response to COVID-19March 23, 2020Ottawa, Ontario
Canadian farmers and food businesses work hard so Canadians have quality food on their grocery store shelves and kitchen tables. In these times of uncertainty, it is more important than ever to make sure that they are supported so they can continue providing the good, healthy food that nourishes our families.
The Prime Minister, Justin Trudeau, today announced important new measures to support farmers and agri-food businesses in Canada facing financial hardship due to the impacts of the COVID-19 pandemic.
Farm Credit Canada will receive support from the Government of Canada that will allow for an additional $5 billion in lending capacity to producers, agribusinesses, and food processors. This will offer increased flexibility to farmers who face cashflow issues and to processors who are impacted by lost sales, helping them remain financially strong during this difficult time.
In addition, all eligible farmers who have an outstanding Advance Payments Program (APP) loan due on or before April 30 will receive a Stay of Default, allowing them an additional six months to repay the loan. This important measure, which represents $173 million in deferred loans, will help keep more money in farmers’ pockets during these critical months.
The Stay of Default will also provide farmers the flexibility they need to manage their cashflow when facing lower prices or reduced marketing opportunities. Applicable farmers who still have interest-free loans outstanding will have the opportunity to apply for an additional $100,000 interest-free portion for 2020-2021, as long as their total APP advances remain under the $1 million cap.
The Government of Canada remains committed to supporting Canada’s agricultural sector to ensure that farmers and businesses have the support they need to provide for their families and all Canadians during this critical time.
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