Durum growers who haven’t been able to sell crops due to “transportation delays” now have until the end of August to pay back their 2009 cash advances.
A stay of default, effective as of Saturday (April 30), was announced Tuesday on federally-backed advances paid out to durum growers through the Canadian Wheat Board under the Advance Payments Program (APP).
“I understand there are transportation issues facing our Western farmers that have made this stay of default necessary,” federal Agriculture Minister Gerry Ritz said in a release. “This stay will allow more time for farmers to be able to get their existing grain to market.”
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The CWB requested the stay as a way to prevent farmers with outstanding advances from going into default, the government said.
Producers who took an advance in the 2009 crop year are now facing “significant cash-flow pressures,” the government said.
Farmers who got a 2009 APP advance and have been unable to sell portions of their 2009 durum crop are eligible for the stay until Aug. 31 — during which time the government will continue to cover the interest on the interest-free portion of the advance.
