CCA Pleased to See Sustained Increase to Interest-Free Portion of Loans under Advance Payments Program
March 11, 2025
On Friday, March 7, the Hon. Lawrence MacAulay, Canada’s Minister of Agriculture and Agrifood,
announced that for the fourth straight growing season the federal government would
increase the interest-free portion of loans under the Advance Payments Program (APP) to
$250,000 rather than the default of $100,000.
CCA has been advocating for the limit to be kept at $350,000, but increasing it to $250,000 is
positive for producers across Canada and will help keep the beef cattle sector economically
competitive in an unsteady economic environment.
Without the change, the interest-free portion of loans under APP would have reverted back to
$100,000, which would not account for inflation and escalating input costs. The intent of APP is
to help farmers, especially young farmers, meet cash flow needs and market their production
flexibly. APP is also an important tool in helping producers meet escalating input costs,
particularly that of raising capital to invest into the next crop. With ongoing trade uncertainty and
current market prices on cattle, the increase can help producers in this uncertain time.
“The Advance Payments Program is a key part of the Business Risk Management suite that
helps producers meet their cash flow needs,” says Nathan Phinney, CCA President, “Keeping
the interest-free portion higher than $100,000 is a helpful tool in keeping our sector competitive
and sustainable in the long-term. We appreciate the federal government’s investment in our
sector and will continue to advocate that the increase be kept permanent.”
The sustained increase is particularly important at a time when producers need all economic
levers to increase food security and economic competitiveness. CCA will continue to engage
with the federal government on this file regarding next steps to ensure that the increase is made
before the growing season starts.
For further information, contact:
Tina Zakowsky
Communications Manager
Canadian Cattle Association
403-451-0931 | zakowskyt@cattle.ca
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