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Do You Have a Crop in Storage for Later Sale?

If you have an eligible crop(s) in storage (e.g. corn, soybeans, wheat, and canola) that you are planning to sell in the future, the Advance Payments Program for Crop Storage is a cash flow tool that you may benefit from.

This Agriculture and Agri-Food Canada program is designed to assist producers with their crop marketing program. An advance (loan) can be obtained based on eligible crops in storage and is repaid as the crops are sold. The advance rates for each eligible crop are predetermined and are outlined on the application form.

For example as of October 1, 2008, the advance rates for the following eligible crops were:

On the ACC Farmers' Financial website (www.accfarmersfinancial.ca), an interactive spreadsheet program allows you to calculate how much you may borrow. A total of 37 crops are covered by the program. Farm-fed crops do not qualify for this program. The maximum advance is $400,000 with the first $100,000 interest free and the remaining amount up to $300,000 at prime minus ¼%. All advances must be repaid in full by September 15, 2009.

The program is administrated by ACC Farmers' Financial in Guelph. The application deadline is February 28, 2009. An administration fee of $400 and a holdback of 2% will be deducted from the advance. An "Advance Payments Program Priority Agreement with a Secured Creditor" (part of the application) must be completed and signed.

For complete information and application forms for the Advance Payments Program for Crop Storage, contact ACC Farmers' Financial in Guelph.

Telephone: 519-766-0544
Toll Free: 1-888-278-8807
Email at info@accfinancial.ca
Website: www.accfarmersfinancial.ca

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