Interest-free limit for Advance Payments Program raised to $250,000

Agriculture and Agri-Food Canada (AAFC) announced that the Government of Canada will increase the interest-free limit of the Advance Payments Program to $250,000 for the 2025 program year.

This means the government will cover the interest on this portion of the advances for producers.

The Advance Payments Program (APP) provides producers with access to low-cost cash advances of up to $1 million, based on the expected value of their agricultural products. Typically, producers receive the first $100,000 interest free. The new higher limit will save producers money on interest and improve cash flow to help cover costs until their products are sold.

This support at the start of the production cycle allows farmers to purchase essential inputs and cover costs for the growing season. Additionally, the program offers marketing flexibility, enabling producers to sell their products when it is most advantageous, rather than being forced to sell immediately for cash needs. This is especially important during uncertain times.

Advances are available on over 500 crop and livestock products across Canada.