Cash-strapped producers in Western Canada have a new tool at their disposal.
The application process for FarmCash’s fall advance payment program opened on Wednesday for farmers in Alberta, British Columbia, Manitoba and Saskatchewan.
Tom Steve, general manager of the Alberta Wheat and Barley Boards (the Alberta Wheat Board is the official administrator of FarmCash), said he didn’t know how busy they would be. to distribute funds to farms in need.
âFor the fall advance, farmers need to have stocks in the bin,â he said. âThere will be a lot less harvest in western Canada this year, but what they have is they can use it as a resource to generate additional cash flow.
The program, based on the size of a farm, offers up to $ 1 million in cash with the first $ 100,000 interest-free and the remainder at an interest rate of TD Prime minus 0.75 percent.
âThis is an extremely low interest rate, this is the lowest interest rate you would get for short term financing and we certainly encourage farmers to look at that,â he said. “Especially after a very dry year, when cash flow is going to be scarce.”
FarmCash was created in 2018 and tested only on farmers in Alberta until last season.
âIn the spring of this year, we offered the advance for the first time in Saskatchewan, Manitoba and British Columbia. So we expanded outside of Alberta for the first time in the spring, âhe said. “It went well, so now we are extending the lead to these other provinces for the fall period.”