Farmers and agri-food businesses to receive support from Canadian government
March 23, 2020 by Manure Manager
Today, Prime Minister Justin Trudeau announced new measures to support farmers and agri-food businesses in Canada facing financial hardship due to the impacts of the COVID-19 pandemic.
Farm Credit Canada will receive support from the Government of Canada that will allow for an additional $5 billion in lending capacity to producers, agribusinesses and food processors. This will offer increased flexibility to farmers who face cashflow issues and to processors who are impacted by lost sales, helping them remain financially strong during this difficult time.
“Farmers and food producers work hard to put food on tables across our country, and they should not have to worry about being able to afford their loan payments or having enough money to support their own families,” Trudeau said. “We are taking action now to give them more flexibility to meet the challenges ahead in these times of uncertainty.”
In addition, all eligible farmers who have an outstanding Advance Payments Program (APP) loan due on or before April 30 will receive a Stay of Default, allowing them an additional six months to repay the loan.(APP is a financial loan guarantee program that provides producers easy access to credit through cash advances.) This measure, which represents $173 million in deferred loans, will help keep more money in farmers’ pockets during these critical months.
Grains, oilseeds and pulse producers who participated in the 2018 Stay of Default, announced in August 2019, are encouraged to contact their administrator for more details.
The Stay of Default will also provide farmers the flexibility they need to manage their cashflow when facing lower prices or reduced marketing opportunities. Eligible farmers who still have outstanding interest-free loans will have the opportunity to apply for an additional $100,000 interest-free portion for 2020-2021, as long as their total APP advances remain under the $1 million cap.