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The Federal Advance Payments
Program (APP)
The Advance Payments Program (APP) provides producers with a cash advance on the value of their agricultural products during a specified period.
By improving their cash flow throughout the year, the APP helps
producers meet their financial obligations and benefit from the best
market conditions.
A number of improvements have been made to the APP in recent years to make the program more responsive.
Changes to the program are in the works which would provide easier access to cash flow by:
• Removing the requirement for livestock producers to use a Business Risk Management program such as AgriStability as security for a cash advance and allowing producers to use
inventory as security. This brings the treatment of livestock more in line with other produced commodities.
• Adding “severe economic hardship” as a condition to offer emergency advances, on the recommendation of the Minister of Agriculture and Agri-Food and the Minister of Finance.
• Revising the security requirements for emergency advances and increasing the emergency advance available to producers from a maximum of $25,000 to $400,000 in conditions of severe economic hardship.
With these changes, producers will have quicker and easier access to cash advances and if all producers take advantage of the improved program, an estimated $3.3 billion in advance payments will be available.
The federal government has worked with industry in developing the changes to the Agricultural Products Marketing Act.
The APP is delivered by producer organizations, on behalf of Agriculture
and Agri-Food Canada.
A full list of participating producer organizations is listed on the program website.
For more information, visit the website at www.agr.gc.ca/app
or call 1-888-346-2511 toll free.
The Federal Advance Payments
Program (APP)
The Advance Payments Program (APP) provides producers with a cash advance on the value of their agricultural products during a specified period.
By improving their cash flow throughout the year, the APP helps
producers meet their financial obligations and benefit from the best
market conditions.
A number of improvements have been made to the APP in recent years to make the program more responsive.
Changes to the program are in the works which would provide easier access to cash flow by:
• Removing the requirement for livestock producers to use a Business Risk Management program such as AgriStability as security for a cash advance and allowing producers to use
inventory as security. This brings the treatment of livestock more in line with other produced commodities.
• Adding “severe economic hardship” as a condition to offer emergency advances, on the recommendation of the Minister of Agriculture and Agri-Food and the Minister of Finance.
• Revising the security requirements for emergency advances and increasing the emergency advance available to producers from a maximum of $25,000 to $400,000 in conditions of severe economic hardship.
With these changes, producers will have quicker and easier access to cash advances and if all producers take advantage of the improved program, an estimated $3.3 billion in advance payments will be available.
The federal government has worked with industry in developing the changes to the Agricultural Products Marketing Act.
The APP is delivered by producer organizations, on behalf of Agriculture
and Agri-Food Canada.
A full list of participating producer organizations is listed on the program website.
For more information, visit the website at www.agr.gc.ca/app
or call 1-888-346-2511 toll free.
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