Advance Payments Program

Advance Payments Program is sponsored by Agriculture and Agri-Food Canada. Provides low-cost cash advances to farmers based on the expected value of their agricultural products.

Advance Payments Program: 1. What this program offers - agriculture. canada.

ca Advance Payments Program: 1. What this program offers 1. What this program offers 1.

What this program offers Change to the interest-free limit for 2026 In April 2026, the Government of Canada announced that the Advance Payments Program (APP) interest-free limit will be set at $250,000, for all non-canola advances, for the 2026 program year. This is the portion of advances on which the Government of Canada pays the interest on behalf of producers.

The change will give producers access to additional cash flow and interest savings to help cover costs until they sell their products. This follows the September 2025 announcement indicating that the APP interest-free limit will be set at $500,000, for canola advances, for the 2025 and 2026 program years. For more information, contact your APP Administrator .

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--> The APP is a federal loan guarantee program which provides agricultural producers with easy access to low-cost cash advances. Under the program, you can access up to $1,000,000 in total advances based on the value of the eligible agricultural products you will produce or that you have in storage. Normally, the Government of Canada pays the interest on the first $100,000 of your advance.

For the 2025 and 2026 program years, the first $250,000 is interest free For canola advances specifically, the first $500,000 is interest free for the 2025 and 2026 program years You repay your advance as you sell the agricultural products, with up to 18 months to fully repay the advance for most commodities (up to 24 months for cattle and bison).

APP advances can provide you with cash flow to meet your financial needs until you are able to sell your agricultural products. The program can provide marketing flexibility by allowing you to sell your agricultural products based on market conditions rather than the need for cash. APP advances are available through participating producer organizations, that is, APP Administrators, across Canada.

Under the APP, you may be eligible to receive up to $1,000,000 per program year, with: the federal government paying the interest on: the first $250,000 of your advance for the 2025 and 2026 program years the first $500,000, for canola advances, for the 2025 and 2026 program years preferential interest rates on the remainder Your cash advance is calculated based on up to 50% of the anticipated market value of the eligible agricultural products that you will produce or that you have in storage.

While you can have more than one advance outstanding, including more than one interest-free advance, you cannot have more than $1,000,000 outstanding at any one time. What you need as security for an advance Your APP advance must be secured. The security required will depend on the type and state of the agricultural product at the time you apply.

The agricultural product on which the advance is based is always required as security. For advances on agricultural products that are in production or are non-storable and for advances on animals or animal products, additional security is required.

This includes the potential proceeds from an eligible business risk management program (for example, AgriInsurance, AgriStability or Farm Income Stabilization Insurance in Quebec) and/or another acceptable form of security. In most cases, the advance amount you are eligible to receive will be limited by the value of the security you provide.

If you are declared in default, the security, including assigned program payments, may be used to pay off your advance. For more information on acceptable forms of security, you should contact your APP Administrator .

Agriculture and Agri-Food Canada's Financial Guarantee Programs Division is responsible for providing federal oversight by working together with APP Administrators to ensure that the program is administered in a manner that: reduces costs to producers and use of government funds is focused on providing benefit to Canadian producers respects the annual Advance Guarantee Agreements, Program Guidelines, the Agricultural Marketing Programs Act and its Regulations