Advance Payments Program (APP):
The Advance Payments Program (APP) is the new program which is the blend of the previous SCAP, ESCAP and fall Cash Advance programs. With the new APP, the production period runs up to 18 months from April to September of the following year. A production period refers to the maximum period of time during which a producer can take a cash advance and repay it. Producers not enrolled in Production (crop) Insurance may apply for an APP advance based on their CAIS reference margin.
Benefits: Loans of up to $400,000 are available to qualified borrowers. The first $100,000 borrowed is interest free, with the balance available at an interest rate of prime minus 0.25% calculated daily and compounded monthly. Qualifying Crops: Corn, Soybeans, Spring and Winter Wheat, Mixed Grain, Oats, Barley, Canola, Seed Corn, Spelt, 2-4 yr Ginseng, Potatoes, Apples, Grapes & Specific Vegetables and many more. Farm Fed Grains are not eligible under new program regulations; however, interest-free livestock loans are now available for hogs, cattle, and sheep.
Applicant Criteria: Producer must maintain Production (crop) insurance through AGRICORP on the crops financed or CAIS coverage on the crops. Program Details: The $100,000 interest-free provision is applicable to the total of all crops that a producer enrols in the program for his/her total 2007 crop, not on each crop individually. Regardless of crop, all repayments are first applied to the interest-free provision. Loans are based on crops in storage. Loans to be repaid as crops are sold (within 10 business days of sale date). Crops to be sold on or before Sept 15, 2008 and full repayment must be received by no later than Sept 30, 2008. Administration fee will be deducted from the loan cheque.
Applications available after October 1, 2007 directly from ACC Farmer's Financial office 100 Stone Rd W, Suite 101 Guelph, Toll-Free 1-888-278-8807 or from the website www.accfarmersfinancial.ca