Producers who have been unable to sell their crops due to rail transportation challenges now have more time to repay their 2013 cash advances under the Advance Payments Program (APP). Agriculture Minister Gerry Ritz today announced a Stay of Default on the repayment of advances for producers who received an advance on their 2013 crops through the Canadian Canola Growers Association (CCGA).
The six-month Stay of Default, which extends to March 31, 2015, was granted at the request of the CCGA to provide producers with more time to repay their outstanding advances. Producers will also have the option to repay their APP advances in cash without penalty. Technical changes are also being implemented to make it easier for all producers to repay their advances by allowing them until the end of the production period to provide proof of sale on any commodity covered by APP.
Producers who received a 2013 APP advance from the CCGA are eligible for the Stay and are encouraged to contact the CCGA for more details.
The APP is a financial loan guarantee program that provides producers easier access to credit through cash advances. Under the APP, producers can receive cash advances of up to $400,000 on the value of their agricultural product, of which the first $100,000 in each crop year is interest free. The deadline to repay the 2013 APP advances is September 30, 2014.