Advance Payments Program

Agriculture and Agri-Food Canada · The Advance Payments Program is a federal loan guarantee program providing agricultural producers with access to low-cost cash advances based on the value of e…

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Overview

The Advance Payments Program is a federal loan guarantee program providing agricultural producers with access to low-cost cash advances based on the value of eligible agricultural products they will produce or have in storage. Producers can access up to $1,000,000 per program year, with the federal government paying interest on the first $250,000 (or $500,000 for canola advances in 2025–2026) and preferential rates on the remainder, repayable over 18–24 months as products are sold.

Eligibility

Agricultural producers in CanadaMust have eligible agricultural products to produce or in storageMust provide acceptable security, including the agricultural product itself plus additional security for products in production or non-storable itemsCannot exceed $1,000,000 in outstanding advances at any one time

Eligible projects

Cash advances on anticipated market value of eligible agricultural products in productionCash advances on agricultural products already in storageCash advances on animals or animal products

Financing terms

Federal government pays interest on the first $250,000 of advances (2025–2026); first $500,000 for canola advances in 2025–2026Preferential interest rates on amounts above the interest-free thresholdAdvances calculated on up to 50% of anticipated market value of eligible agricultural productsRepayment over 18 months for most commodities; up to 24 months for cattle and bisonSecurity required: the agricultural product on which advance is based, plus additional security for products in production or non-storable items

How to apply

1Check eligibilityConfirm you meet every criterion listed above before you start.

2Prepare the project packageProject description, budget with quotes, team, and recent financial statements.

3Apply on agriculture.canada.caGovgrant members can draft the application with AI and export a formatted PDF.

4Respond to reviewer questionsMost programs come back with one round of questions within a few weeks of submission.

Additional information

Advances available through participating producer organizations (APP Administrators) across CanadaInterest-free limit set at $250,000 for non-canola advances and $500,000 for canola advances for 2025–2026 program yearsProgram also provides marketing flexibility by allowing sales based on market conditions rather than cash needsAdministered under the Agricultural Marketing Programs Act and its Regulations

At a glanceMaximum$1MProviderAgriculture and Agri-Food CanadaDeadlineRolling intakeStatusOpenRegionCanadaOfficial sourceagriculture.canada.ca ↗

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