Durum farmers and certified organic farmers who did not have their product sold last year now have more time to repay cash advances under the Advance Payments Program (APP). Agriculture Minister Gerry Ritz announced a Stay of Default on the repayment of advances until April 30, 2011 for farmers of these commodities who received a 2009 advance through the Canadian Wheat Board (CWB).
“Farmers work hard to grow top quality Canadian durum but when it’s not sold, they need some breathing room until they can repay their advances,” said Minister Ritz. “This Government understands that challenges facing grain producers so we’re providing a stay so that farmers have more opportunity to receive a fair price for their yields.”
Producers who took an advance in the 2009 crop year are facing the prospect of repaying large cash advances this fall, creating significant cash-flow pressures. The Stay of Default was granted following a request from the CWB to prevent farmers with outstanding advances from going into default.
The Stay of Default came into effect on October 1, 2010. Farmers who received a 2009 APP advance from the CWB and have been unable to sell portions of their 2009 durum and certified organic grain are eligible for the Stay. These producers now have until April 30, 2011 to sell their product and repay their advance. The Government of Canada will continue to pay interest on the interest-free portion of farmers’ outstanding advances until April 30, 2011.
Farmers should contact the CWB for more details.
