“Now is a good time for farmers to take stock. Not just of what’s in the bin or pasture, but of their farm’s financial needs heading into winter,” says Dave Gallant, vice-president of finance & APP operations at Canadian Canola Growers Association (CCGA).
“If they’re looking to borrow money this fall, an Advance Payments Program cash advance from CCGA offers benefits for farmers that are worth a look.”
Gallant says a cash advance provides farmers with access to up to $1M in financing, including up to $500,000 interest-free. Any amount above that is at CCGA’s interest rate of prime minus 0.25 per cent, resulting in a blended rate that’s well below prime on every advance.
“A cash advance can save thousands of dollars in interest costs,” he says. “Through CCGA, farmers can apply on over 50 commodities including grains, oilseeds, pulses, honey, and large and small livestock.”
Gallant explains a few ways that a fall cash advance could support the farm.
Get access to cash flow from unsold inventory
Farmers can hold onto grain or livestock until they’re ready to market, while still having the necessary cash flow to keep their operation running smoothly.
An advance is low-cost financing
With CCGA’s below-prime interest rates on an advance, it’s a smart financial choice to pay fall bills or take advantage of early-purchase discounts on next year’s inputs.
Manage seasonal expenses more efficiently
Farmers can use a fall advance to cover year-end payments, equipment maintenance, winter feed costs, or whatever their farm needs.
Options for newer farmers too
Just starting to farm? No problem. Farmers can apply as long as they own, store, and sell their inventory separately from others.
“Every farm is different, but post-harvest planning often means bridging the gap between this year’s work and next year’s plans,” says Gallant. “A cash advance can provide flexibility, helping farmers to make confident decisions as they prepare for the next growing season.”
To learn more about cash advances from CCGA, visit Cash Advance | Canadian Canola Growers Association
The Advance Payments Program is a federal loan program administered by CCGA. It offers Canadian farmers marketing flexibility through interest-free and low-interest cash advances.
