Farmers can now apply for the 2022 Cash Advance Program – DiscoverWestman.com

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The Canadian Canola Growers Association (CCGA) is now accepting applications for the 2022 Cash Advance Program.

Dave Gallant is CCGA’s director of finance and operations, says with low-interest farmers looking for options to finance their spring inputs
you might want to give a cash advance a second look.

“Farmers can apply for cash advances under the federal government program, with the first $100,000 interest free. There is no charge to CCGA for a cash advance, and the overall program limit is one million dollars. So on the remaining $900,000 CCGA loans to farmers at prime less 3/4 percent. So today the prime rate is 2.45%, which means that on the extra $900,000 the farmer would pay 1.7% interest. Which gives you a blended rate of 1.5%. over a million dollars.”

He says that since commodity market values ​​are so much higher than they were last year, the federal government has increased cash advance rates.

“So, for example, canola this year is $363.75 a tonne, last year it was $252 a tonne. This means that for the same amount of grain or the same number of acres, farmers will probably be able to receive between $25 and $35 a tonne. hundred more money for their cash advance than the previous year. »

He notes that the cash advance program covers about 55 different commodities, including all grains, oilseeds, pulses, specialty crops, livestock, cattle, bison, sheep and goats, and honey. .

The Advance Payments Program is a federal loan program administered by the CCGA.

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