Agriculture and Agri-Food Canada News Release
May 18, 2006

MINISTER STRAHL PROVIDES LOAN ENHANCEMENTS FOR FARMERS

OTTAWA, Ontario – Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board Chuck Strahl today announced the details of the Enhanced Spring Credit Advance Program (ESCAP), a budget commitment to ensure producers get access to more money starting this spring.

The program will:

• Double the loan maximum for spring advances to $100,000
• Keep the loans interest-free
• Extend the repayment period to September 30, 2007
  

“Doubling the interest free loan limits and extending the repayment period are practical steps we’re taking to help farmers this spring,” said Minister Strahl. “These programs are good for producers because they are straightforward and bankable. The improvements mean more cash flow to farmers to help ease the immediate cash crunch of spring planting.”

Producers who have already taken their advance through the Spring Credit Advance Program (SCAP) will have the option to transfer their 2006 SCAP advance to ESCAP in order to take advantage of the higher interest-free limit and extended repayment period.

To implement these enhancements, Agriculture and Agri-Food Canada will immediately begin working with farm organizations that administer the SCAP, such as the Canadian Canola Growers Association, the Canadian Wheat Board, the New Brunswick Potato Agency and the Fédération des producteurs de cultures commerciales.

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