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By Justin Goulet

Farmers and agri-food businesses receive federal aid during COVID-19 pandemic

Mar 23, 2020 | 11:24 AM

OTTAWA, ON – Prime Minister Justin Trudeau has announced new measures to support farmers and agri-food businesses amid the COVID-19 pandemic.

Farm Credit Canada will receive support from the federal government that will allow for an additional $5 billion in lending capacity to producers, agribusinesses and food processors.

This will help create increased flexibility to farmers who face cashflow issues and to processors impacted by lost sales.

All eligible farmers who have an outstanding Advance Payment Program (APP) loan due on or before April 30 will get a Stay of Default. This gives them an additional six months to repay the loan.

The Government of Canada says this measure represents $173 million in deferred loans and will help keep more money in farmers’ pockets during the global health crisis.

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The Stay of Default will also give 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 be able to apply for an added $100,000 interest-free portion for 2020-2021.

That’s as long as their total APP advance stays 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,” read a release from the federal government.

For the 2019 Advance Payment Program year, there are over 21,000 producers participating and over $3 billion in advances. The new deadlines for outstanding Advance Payment Program loans are as such:

· September 30, 2020: 2018 cash advances for grains, oilseeds, and pulses

· September 30, 2020: 2018 cash advances for cattle and bison

· October 31, 2020: 2019 cash advances on flowers and potted plants

Administrators who are taking part in the Stay of Default are the Alberta Sugar Beet Growers, Alberta Wheat Commission, BC Breeder and Feeder Association, Canadian Canola Growers Association, the Manitoba Corn Growers Association Inc., Manitoba Livestock Cash Advance Inc., Western Cash Advance Program Inc., PEI Federation of Agriculture, and the Agricultural Credit Corporation.

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