OFA applauds move by Ottawa on loan interest relief

The Ontario Federation of Agriculture (OFA) is welcoming news that the 2024 federal budget included a permanent increase to the interest-free limit under the Advanced Payments Program (APP).

The announcement is welcome relief to farm businesses across Ontario and Canada, the OFA said in a news release. 

It marks a significant victory for Canadian agriculture and showcases the effectiveness of persistent advocacy efforts by OFA, provincial agricultural commodity partners and the Canadian Federation of Agriculture, the OFA said.

“The Advanced Payments Program is an important tool in the toolbox for farmers across the country to access short-term financing for their farm business,” said Drew Spoelstra, OFA president.

“We are at a critical point in time with high costs of production, inflation, elevated interest rates and falling commodity prices, and we’re grateful for the Government of Canada’s response by increasing the interest-free portion of the APP to $250,000 annually."