Commodity Loan Guarantee Program
The Commodity Loan Guarantee Program (CLGP) supports farmers by providing access to short-term operating loans for the purchase of crop input supplies, such as seed, fertilizer, and pesticides. It is administered on behalf of the Ministry by the Agricultural Credit Corporation (ACC); a private sector, not-for-profit financial institution comprised of various producer associations and marketing boards. Under the CLGP, qualifying farmers can borrow up to $750,000.
Recent Improvements to the CLGP
To help farmers affected by abnormally high levels of Deoxynivalenol (DON) in the 2018 corn crop, the Ontario government made changes to the Commodity Loan Guarantee Program (CLGP):
- The repayment deadline for all commodities has been extended
from February 28 to September 30 for the 2018 and 2019 program
years, on a pilot basis.
- While this extension will give producers affected by DON additional time to market their corn, all commodity producers may benefit from the added time.
- There will be no additional application fees for the extension and producers can still pay off their loans (wholly or partially) at any time before the new September deadline.
- The $750,000 maximum loan limit for individual farmers will apply across program years.
- To support the pilot, the government has increased the maximum guaranteed loan limit under the CLGP from $120 million to $200 million for the 2019 and 2020 program years.
Additional program delivery details are communicated to Program Administrators and participants through Program Guidelines. The latest CLGP Program Guidelines can be found here.
Program Applications and Enquiries
Applications and additional details about the program and loan rates can be found here: www.agcreditcorp.ca/commodity_loan_program
For additional enquiries contact:
Agricultural Credit Corporation
660 Speedvale Avenue West, Suite 201
Toll Free: 1-888-278-8807
For more information:
Toll Free: 1-877-424-1300