Agriculture and Agri-Food Canada News Release
June 5, 2006

HOUSE OF COMMONS PASSES AMENDMENTS TO ADVANCE PAYMENT PROGRAMS

OTTAWA, Ontario – The Honourable Chuck Strahl, Minister of Agriculture and Agri-Food and Minister for the Canadian Wheat Board, today announced that amendments to the Agricultural Marketing Programs Act (AMPA) to improve cash advance programs for producers have been passed by the House of Commons.

"I am pleased that this new government has been able to work with the opposition to pass these amendments quickly through the House of Commons," said Minister Strahl. "We all recognize that improvements to cash advance programs are important for producers and the fact that the amendments are moving forward is good news."

Cash advance programs provide spring and fall cash advances to producers, a portion of which is interest free, to meet high cash flow requirements at spring seeding and fall harvest.

The government's proposed amendments introduced on May 18, 2006 would:

  • consolidate the Advance Payments Program (fall) and the Spring Credit Advance Program, as a single program under the AMPA;
  • expand the coverage to include livestock and more crops;
  • increase the overall limit on advances from $250,000 to $400,000; and
  • increase the amount of interest-free advances from $50,000 to $100,000.

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