The Advance Payments Program (APP) is a federal program under the Agriculture Marketing Programs Act (AMPA), which provides agriculture producers with easy access to low-interest cash advances for livestock and crops.
Under the program, beef farmers can access up to $1,000,000 per program year in advances based on the value of their cattle. As announced today, the Government of Canada will cover the interest on the first $250,000 advanced to the farmer for the 2024 program year, and advances are repaid once the cattle are sold.
In 2022, the Government of Canada increased the interest-free portion of the Advance Payments Program from $100,000 to $250,000 for the 2022 and 2023 program years. As pressures compounded in 2023, the limit was further increased from $250,000 to $350,000 for the 2023 program year.
In unison with the Canadian Cattle Association, BFO has been calling on the federal government to maintain the $350,000 interest-free portion of the program permanently to help support business cash flow needs in light of increased market volatility, interest rate hikes, and debt servicing costs that farmers are required to manage.