Canola Field - LNN

By Dori Modney

Farmers granted extension to repay cash advances

Aug 16, 2019 | 11:40 AM

OTTAWA — Farmers with cash advances for grains, oilseeds and pulse crops are being granted more time to pay the money back.

The federal government is extending the stay of default from the end of September to the end of March 2020.

Agriculture Minister Marie-Claude Bibeau says the move is needed to help farmers deal with “market disruptions,” but doesn’t mention what they are.

The Canadian Canola Growers Association (CCGA), and other groups, administer the program.

CCGA C-E-O, Rick White, confirms farmers have been asking for additional time to repay their advance.

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He says producers have fewer marketing options for selling and prices have declined, which makes it difficult for farmers to sell their crops at a profit.

Other administrators include Alberta Sugar Beet Growers, Alberta Wheat Commission, B-C Breeder and Feeder Association, Manitoba Corn Growers Association, Manitoba Livestock Cash Advance, Producteurs de Grains du Quebec and Western Cash Advance Program.

For the 2018 program year, 12,902 grains, oilseed and pulse producers took more than $1.68 billion in advances from the Advance Payments Program, which is a financial loan guarantee program that provides producers easy access to credit through cash advances.

As of July 31, 2019, there have been close to 1,100 new producers who have joined the program and there has been approximately 360 producers who have returned to the program after not participating in the last three years.