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Ontario Grain Farmer Magazine

Grain Farmers of Ontario Recognizes Increase to Advance Payments Program

Guelph, ON – March 26, 2024 – Grain Farmers of Ontario, the province’s largest commodity organization, representing Ontario’s 28,000 barley, corn, oat, soybean and wheat farmers, today thanks Agriculture and Agri-Food Canada (AAFC) Minister Lawrence MacAulay and his team for announcing an increase to the interest-free limit of the Advanced Payments Program for this year.

The Advance Payments Program gives producers access to cash advances of up to $1 million based on the expected value of their crop or other agricultural product. Farmers receive the first $100,000 interest-free, and AAFC can raise that limit if the season warrants it. This year, the limit of the interest-free portion has been raised to $250,000.

“Farmers face a lot of uncertainties and unpredictability. When the weather is bad or prices are low, Ontario’s family farms can be quickly impacted. We appreciate the government’s decision to increase this limit and the access to interest-free loans this will provide farmers,” said Jeff Harrison, Chair, Grain Farmers of Ontario.

“Grain Farmers of Ontario has been advocating to increase the limit for some time, and it is good to see that hard work pay off. We look forward to working with the government on continued improvements to this and other risk programs and to any adjustments that might need to be made in the future,” Harrison continued.

From the Agriculture and Agri-Food Canada press release:

Quick facts

  • Under the Advance Payments Program, cash advances are calculated based on up to 50 per cent of the anticipated market value of eligible agricultural products that will be produced or are in storage.
  • Advances are available on over 500 crop and livestock products across Canada.
  • In 2022, due to exceptional circumstances, the Government of Canada increased the interest-free portion of the Advance Payments Program from $100,000 to $250,000 for the 2022 and 2023 program years. As pressures compounded in 2023, the limit was further increased from $250,000 to $350,000 for the 2023 program year.
  • Producers have access to a suite of business risk management (BRM) programs to help them manage significant risks that threaten the viability of their farms and are beyond their capacity to manage. The suite includes the core programs of AgriStability, AgriInsurance and AgriInvest.

Contact:

Victoria Berry, Communications
226-820-6641
vberry@gfo.ca 

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Grain Farmers of Ontario
Grain Farmers of Ontario is the province’s largest commodity organization, representing Ontario’s 28,000 barley, corn, oat, soybean, and wheat farmers. The crops they grow cover over 6 million acres of farm land across the province, generate over $4.1 billion in production value, result in over $27 billion in economic output and are responsible for over 90,000 jobs in the province.