Interest-free limit of Advance Payments Program set to $250K for 2024

Agriculture and Agri-Food Canada has announced that the interest-free limit of the Advance Payments Program has been set at $250,000 for the 2024 program year.

This is the portion of advances on which the Government of Canada pays the interest on behalf of producers.

Under the program, producers would normally receive the first $100,000 interest-free, but due to farm operating costs remaining uncertain heading into the 2024 season, the first $250,000 will be interest free.

According to AAFC, this change will save approximately 11,950 participating producers an additional $4,916 in interest costs on average, for a total savings of up to $58.7million.

The Advance Payments Program gives producers access to low-cost cash advances of up to $1 million, based on the expected value of their agricultural product. Under the program, producers normally receive the first $100,000 interest-free.

According to Minister of AAFC, Lawrence MacAulay, the higher limit announced will give producers access to additional cash flow and interest savings to help cover costs until they sell their products.

“In the face of so many challenges, our hardworking producers continue to show their resilience and produce top-quality products for Canadians, and the world. Increasing the interest-free portion of the Advance Payments Program means improved cash flow and savings for farmers as we head into the 2024 season,” says Minister MacAulay.

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