Minister MacAulay announces interest-free limit under the Advance Payments Program will be set at $250,000 for 2025

OTTAWA, ON, March 7, 2025 /CNW/ - Today, the Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food, announced that the Government of Canada will set the interest-free limit of the Advance Payments Program at $250,000 for the 2025 program year. This is the portion of advances on which the Government of Canada pays the interest on behalf of producers.

The Advance Payments Program gives producers easy access to low-cost cash advances of up to $1 million, based on the expected value of their agricultural product. Under the program, producers typically receive the first $100,000 interest-free. The higher limit announced today will result in interest savings for producers while increasing access to cash flow to help cover costs until they sell their products.

With this support at the beginning of the production cycle, farmers will be able to purchase essential inputs and cover their costs to support production this growing season. More importantly, the program offers marketing flexibility, enabling producers to sell their agricultural products when it is most advantageous, rather than being forced to sell for immediate cash needs, which is especially crucial in times of uncertainty. The Government of Canada remains committed to helping producers manage financial challenges so they can continue driving the economy.

Quote

"Raising the interest-free portion of the Advance Payments Program will give our hardworking farmers some extra cash flow and savings as we head into the 2025 growing season. In the face of different challenges and trade uncertainty, our hardworking producers continue to show their resilience and deliver top-quality products for Canadians, and the world."
         - The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food

Quick facts

• Under the Advance Payments Program, cash advances are calculated based on up to 50% of the anticipated market value of eligible agricultural products that will be produced or are in storage.
• The program is delivered through 26 industry-led associations.
• Advances are available on over 500 crop and livestock products across Canada.
• With the interest-free limit at $250,000 for 2025, participating producers could save up to $5,000 in interest costs. This change will represent estimated savings of up to $65 million for over 13,000 producers.  
• Producers also have access to a suite of business risk management (BRM) programs to help them manage significant risks that threaten the viability of their farms and are beyond their capacity to manage. The suite includes the core programs of AgriInsurance, AgriStability and AgriInvest.
• BRM programs are the first line of support for producers against income and production losses, helping them manage risks that threaten the viability of their farms.

Associated links

• Advance Payments Program
• Business risk management programs

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SOURCE Agriculture and Agri-Food Canada

Contacts: For media: Annie Cullinan, Director of Communications, Office of the Minister of Agriculture and Agri-Food, [email protected]; Media Relations, Agriculture and Agri-Food Canada, Ottawa, Ontario, 613-773-7972, 1-866-345-7972, [email protected]