CFA welcomes extension of $250,000 interest free threshold under Advance Payments Program for 2026

Ottawa, ON – April 1st, 2026 – The Canadian Federation of Agriculture (CFA) welcomes today’s announcement by the Minister of Agriculture and Agri-Food that the Government of Canada will extend the $250,000 interest free threshold under the Advance Payments Program (APP) for the 2026 program year.

“This is a positive step that ensures farmers continue to have access to cost effective operating capital at a time of ongoing uncertainty and rising input costs,” said Keith Currie, President of the Canadian Federation of Agriculture. “Programs like the APP are critical tools that help producers manage cash flow throughout the production cycle.”

The APP gives farmers low cost, short term advances to help manage cash flow until their products are sold. This flexibility allows producers to sell based on market conditions, not immediate cash needs. With rising input costs and inflation, keeping a higher interest free threshold is increasingly important.

“Maintaining the $250,000 interest free portion reflects the realities farmers are facing today,” Currie added. “We are seeing continued volatility in input costs, supply chains and global markets, and this type of support is important in helping farmers navigate those pressures.”

While welcoming today’s announcement, CFA emphasized the importance of longer term stability and predictability for producers.

“Farmers need certainty to plan ahead,” said Currie. “We look forward to continuing to work with government to secure a permanent increase to the interest free portion of the program, so that producers have the predictability they need to make informed business decisions in an increasingly complex operating environment.”

CFA also noted the importance of timely program announcements to support effective planning for the production season.

The Canadian Federation of Agriculture represents over 190,000 farm families across Canada and is the national voice of Canadian farmers. CFA works to ensure agriculture remains profitable, sustainable and competitive, and plays a key role in strengthening Canada’s food system and rural communities.