Farmers applying for the Advance Payments Program will be allowed to temporarily waive the pre-production requirement.
The move means that farmers will be eligible to receive 100 per cent of their 2022 advance immediately when they apply.
Normally, producers would receive 60 per cent upfront, and 40 per cent after seeding is confirmed.
Federal Agriculture Minister Marie-Claude Bibeau says they made the change to help producers increase their cash flow this spring.
"Canada's agricultural producers are facing an increase in the cost of raw materials, including fuel and fertilizer, a situation exacerbated by Russia's invasion of Ukraine. In these uncertain times, it is more important than ever that our farmers are able to maximize their production to feed Canadians and the world. This temporary change to the Advance Payments Program comes in time for the planting season and will help farmers purchase the inputs needed for sustainable food production."
Access to additional cash flow at the start of the production cycle will ensure farmers can purchase important inputs, such as fuel, fertilizer and seed, in order to maintain full production this growing season.
Under the Advance Payments Program, have access to cash advances of up to $1 million based on the expected value of their agricultural product, the first $100,000 of which is interest free.
The Federal Government notes that pressure on world food supplies continues to increase due to the conflict in Ukraine, and Canada is prepared to help fill the gap in world production.
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