Cash advance eligability

[Ron]

I just looked at the cwb website and phoned and talked with them (had to bitch about the PRO anyway).
If you have been in default 3 times it used to be you were not eligable for another advance, ever. Now if you have repaid your advance you are eligable again the next year (you have to wait one year). They arent really advertising this but it is in the fine print on the spring advance forms, ask your elevator manager.
I know the last thing we need is more debt but this is way better than going to the Evil Empire (Agricore) for trade credit.
I also asked how to repay my fall advance when they wont take all my RS wheat and I can repay up to 10% cash without a penalty (at least it isnt Durum).

[wd9]

Ron, it isn't fine print, it is the contract. It is important to read it in its entirety before agreeing to the terms and signing.

[Ron]

wd9, I have read the contract and understand it, I am just pointing this out for so who have defaulted in the past (for whatever reason) know about this option for inputs.

[silverback]

Pretty hard to repay an advance when they have not made any sales hey? 60% call on an 80% acceptance - really good.

It sure is better than that evil open market would be.

[wd9]

Sorry Ron, didn't mean to overstate the obvious, just did I guess. Many don't read it as you say.

Anyone have thoughts on what would make the cash advance for either board, or non board, Spring or Fall advances better?

[TOM4CWB]

WD9;

I am very happy with the Canola advance... to roll it from spring to fall more easily would be nice... and to deal... only... (NOT with the CWB) with the Canola people on wheat as well would be much better.

[WRAPper]

I would like all cash advances handled by the Brick, NO interest No payments til 2008.

[parsley]

W****r,

Now, that's funny!

Parsley

[melvill]

Hey, WRAPper, I read your Brick comment with a mouth full of coffee. Nearly spit it on my keyboard. Take it easy on us - early morning humour can result in bad things happening.

How's calving?

[wd9]

TOM4CWB, never know what the future holds with the CWB, but since CCGA already handles about 20 grains, feed wheat, feed barley, oilseeds, pulses, hay... what is a couple more.

Rolling the spring advance to the fall is key to the 'brick' posting (good one BTW). Rolling the advance from spring to fall allows interest free use of the 50k for almost 18 months. If you are securing an operating loan already, this makes good business sense. The loyalty discount will once again be offered this fall and hopefully with complete website entry by the farmer costs can be even lower. This is after all a government program so hands are tied a bit on administration - ok a lot.

One important difference between the spring and fall is AFSC thru crop ins assumes the risk 100% so no holdback is required. However in the fall CCGA needs the 3% for risk management on default accounts so that is why you need to pay down the 1500 on the 50,000 or interest gets accumulated on that amount. Costs of admin go up on that tiny portion, and the farmer pays interest. It is important farmers know why.

The spring program should be ready roll by early April.

Again, any suggestions would be greatly appreciated on this program.

Nearly 8000 producers access 300 million dollars anually. Not a lot when you consider there is at least 60,000 farmers who could potentially access up to 3 billion dollars! The larger the program, the more easier to explain to the federal government the benefit - although already it is quite large.

Managing basis in the fall is also an option with the program providing the farmer has storage.

[TOM4CWB]

WD9,

Please expand on feed wheat and barley.

Could this mean that Pedigreed seed could be an eligible product for the advance?

[wd9]

First pedigreed seed. This gets asked a lot but the answer is based on the AMPA act guidelines. It doesn't matter what the end use form or perceived value the product is in its marketed form, the base grain is used to determine eligibility for the advance. Whether it is organic, ped seed, nutraceutical etc, if the base grain is say peas it qualifies based on the fact it is peas and the advance qualifies for tonnage in store in the fall, or availability of crop insurance in the spring.

Question on the feeds. Within the Non-Designated areas (southern BC for example) CCGA can do the advance on feed wheat and barley. Within the Designated Area, the CWB does the advance. This is the same rule as the pedigreed seed question, 1 base commodity, 1 advance amount, 1 administrator. Boundaries have been set.

One thing new for upcoming advances will be the Advance Patments Program ID. This ID will be unique for each producer - even each one within a corporation - and will be used by grain handlers, CCGA, CWB, Government, etc.

It is also important to know CCGA, AFSC and the CWB are linked together with the program and each knows what the other is doing. The ID will make this linkage more efficient and less costly to administer.

If you go to page http://ccga.ca/CashAdvanceHome.htm
you will see the amounts for 05 Fall Program. Also note the non-designated box. Click on FAQ for a comprehensive set of q and a on the programs.

TOM4CWB, did I answer what you were after?

[TOM4CWB]

WD9;

From my reading of the CWB Advance I won't take it as I will not be delivering seed to the CWB.

On roll over, if the 3% is paid off, then the rest can be rolled over to a fall advance from the spring advance with no penalty as I understand now.

We got some CCGA info on this afer we had paid most of the spring advance.

THe CWB has been so nasty and political on advances... we at least need a choice of service provider... need to get it from the CCGA ONLY if we have an account set up with them!

[wd9]

Something to consider for sure, one stop shopping would be cool.