The interest-free portion of the Advanced Payments Program has been set at $250,000 for this year, the federal government announced Friday.
Under the program, producers had typically received the first $100,000 interest-free, although that amount has bounced around in recent years. It was raised to $250,000 in 2022, and then further increased to $350,000 in 2023, mainly due to skyrocketing input costs. However, the interest-free portion returned to $250,000 again in 2024.
The Advance Payments Program gives producers easy access to low-cost cash advances of up to $1 million, based on the expected value of their agricultural product. The higher interest-free portion results in interest savings for producers, while also increasing their access to cash flow to help cover costs until they sell their products.
With the interest-free limit at $250,000 for 2025, participating producers could save up to $5,000 in interest costs, Ottawa said in a statement. That represents estimated savings of up to $65 million for over 13,000 producers.
Advances are available on over 500 crop and livestock products across Canada.
