Cash Advance Program Changes Sought

OTTAWA - May 18/06 - SNS -- The Canadian government plans to introduce legislative amendments to the Agricultural Marketing Programs Act (AMPA) intended to increase the amount of money available under cash advance programs for the country's farmers.

If passed by parliament, the amendments will expand crops covered. Coverage is currently restricted to field crops, maple syrup, fur, and honey. The proposed amendments would expand coverage to include most agricultural products, including livestock (but not including supply managed products) and crops such as blueberries and cranberries.

The government also wants to increases the interest free component loans under the Advance Payments Program (APP) from CDN $50,000 to $100,000. The maximum advance will also be increased from $250,000 to $400,000.

Agriculture Canada also wants to combine the fall Advance Payments Program and the Spring Credit Advance Program into a single program under the AMPA.