Saskatchewan farmers needing some extra cash for this spring can access it from the Canadian Canola Growers Association (CCGA).
CCGA is issuing cash advances through the Advance Payments Program (APP). APP is a federal loan program administered by CCGA.
Director of Finance and APP Operations at the Canadian Canola Growers Association Dave Gallant says the interest-free limit for cash advances has increased to $350-thousand, as of Monday. Previously the interest-free limit was $250-thousand.
“And to put that into dollars and cents, a farmer with a million dollar advance at prime plus one at the bank is going to save roughly 4 to 6-thousand dollars depending on what they borrow at the bank from, using a cash advance under these new rules.” explained Gallant.
“We’re seeing increased demand this year for the program, primarily because it’s that time of year, seeding costs are high and interest costs are high again this year.” he added.
Gallant says there are no restrictions when applying for a cash advance. Once the farmer applies the money will be deposited into their bank account, then “they chose it as they see fit in terms of how they need to use the funds to make their farm successful.”
There is no admin fee when applying, but Gallant noted farmers pay on the interest-bearing portion, which is $650-thousand prime minus 0.75 percent.
Gallant says they will be reaching out to existing customers to explain the changes and any actions that the customer may need to take.
Farmers wanting to know more can call 1-866-745-2256 or visit www.ccga.ca.
You can hear the interview with Dave Gallant about the program below.