Durum farmers who have been unable to sell their crops due to transportation delays will have additional time to repay their 2009 cash advances under the Advance Payment Program (APP). A Stay of Default has been announced on the repayment of advances until August 31, 2011 for farmers of durum who received a 2009 advance through the Canadian Wheat Board (CWB).
“I understand there are transportation issues facing our Western farmers that have made this Stay of Default necessary,” said Minister Ritz. “This Stay will allow more time for farmers to be able to get their existing grain to market.”
Producers who took an advance in the 2009 crop year are facing the prospect of repaying large cash advances this spring, 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 April 30, 2011. Farmers who received a 2009 APP advance from the CWB and have been unable to sell portions of their 2009 durum crop are eligible for the Stay. The Government of Canada will continue to pay interest on the interest-free portion of farmers’ outstanding advances until August 31, 2011.
Farmers should contact the CWB for more details.
