APP deadline extension is good news for crop producers, says CFA

OTTAWA -- The Canadian Federation of Agriculture (CFA) applauded yesterday's federal government announcement of an extended deadline for repayments to the Advance Payments Program (APP) for crop producers. 

Agriculture and Agri-Food Minister Gerry Ritz implemented a Stay of Default on the repayment of APP advances until January 31, 2011 for crop producers in British Columbia, Alberta, Saskatchewan and Manitoba who have received a 2009 advance through the Canadian Canola Growers Association (CCGA).

"Many western crop producers face intense cash-flow pressures due to weather-related conditions that are beyond their control," said Ron Bonnett, CFA President. "The wet conditions simply don't allow for normal harvesting operations.This Stay of Default provides the critical extra time necessary for many producers to get products to market before having to make their APP repayments."

"After receiving two or three times the average seasonal rainfall, many farmers are stuck with crops either out in the field or trapped in a bin, with no way to get them to market. Less than half the current crop has been harvested," said Greg Marshall, President of the Agricultural Producers Association of Saskatchewan and Chair of the CFA's Grains and Oilseeds Committee. "This announcement will provide many farmers struggling with water-logged fields with the breathing room they need to finish harvest."

According to the government's news release the Stay of Default comes into effect on October 1, 2010. Farmers of more than 25 crops, including canola, oats, flax, rye, mustard, organic grain and durum are eligible. Farmers will now have more time to repay their advance in full in accordance with the original repayment agreement. The Government of Canada will continue to pay interest on the interest-free portion of farmers' outstanding advances until January 31, 2011.