Stay of Default Extends Repayment Deadline for 2018-19 Cash Advances
Canadian Canola Growers Association media release
August 15, 2019 – Earlier today, Agriculture and Agri-Food Minister Marie-Claude Bibeau announced a Stay of Default for the 2018-19 Advance Payments Program (APP) affecting farmers with cash advances on grains, oilseeds and pulse crops. The Stay extends the current repayment deadline of September 30, 2019, to March 31, 2020, for cash advances issued by Canadian Canola Growers Association (CCGA) and eight other APP administrators.
“International grain trade issues have impacted marketing plans, and we’ve heard from many farmers asking for additional time to repay their advance,” says Rick White, Chief Executive Officer of CCGA. “There are fewer marketing options for selling and prices have declined, which makes it difficult for farmers to sell their crops at a profit.”
A Stay of Default means that farmers with a 2018 cash advance now have an additional six months to repay their advance. Details of the Stay of Default include:
- The Stay comes into effect on August 15, 2019;
- The end of the production period for 2018-19 eligible advances will be extended from September 30, 2019, to March 31, 2020;
- The interest-free benefit will be maintained throughout the six-month extension;
- Effective August 15, 2019, farmers who are eligible for the Stay will be able to make a cash repayment on their 2018-19 advance without providing proof of sale documentation or facing cash repayment penalties.
“During the past 12 months farmers have faced a number of challenges, so we are pleased Minister Bibeau has responded with additional support to help them navigate these issues,” says White. “We look forward to working with the APP team at Agriculture and Agri-Food Canada to implement these changes immediately.”
While the conditions of the Stay of Default come into effect today, all other existing terms and conditions associated with the 2018-19 APP remain in effect. CCGA reminds farmers that repayments on existing advances must be made every time a farmer sells a commodity that is associated with their advance, including advances that are eligible for the Stay of Default. In addition, 2018 advances that include an interest-bearing portion will continue to accrue interest throughout the extension.
Farmers who have questions about their 2018-19 cash advance or the Stay of Default are encouraged to contact CCGA at 1-866-745-2256.
CCGA represents canola farmers on national and international issues, policies and programs that impact farm profitability and is an official administrator of the Government of Canada’s Advance Payments Program.
Kelly Green, Director of Communications