Ottawa increases interest-free portion of the Advance Payments Program to $250,000

Federal Agriculture Minister Lawrence MacAulay is raising the interest free limit on the 2024 Advance Payments Program.

The Advance Payments Program gives producers access to cash advances of up to $1 million, with the first $250 thousand dollars now being interest free.

He says 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 planting season."

The government says the $250 thousand dollar interest free portion will now mean over 11,900 participating producers will save an additional $4,900 on average in interest costs ... 
for a total savings of up to $58.7 million.

Under the program, the normal limit is set at $100,000 but was increased to help give producers access to additional cash flow and interest savings to help cover costs until they can sell their product.