Advance Payments Program

Francais

ACMA is now accepting applications for the 2020/21 APP program year! The Advance Payments Program is a federal program, delivered and administered by ACMA.  Under the program, the Government of Canada provides the loan guarantee, funds the interest-free portion of advances and helps to make low interest rates possible on the remainder for Canadian producers. ‘Advance Payments Program’ (APP) advances up to 50% of the market value of your product during production, to be repaid as the product is sold.  ACMA administers the program in Nova Scotia, New Brunswick, Newfoundland & Labrador, and P.E.I. with advances available for the following commodities:

Nova Scotia: Livestock (Cattle, Hogs & Weaners, Sheep), Fruit (Apples, Wild Blueberries, Cranberries, Haskaps, Raspberries, Strawberries), Christmas TreesGrains & Oilseeds,  Greenhouse (Vegetables, Potted Plants, Cut Flowers), Sweeteners (Honey, Maple Syrup), Nursery (Container Shrubs, Evergreen & Deciduous Trees), Sod and Farm Raised Fur (Mink Pelts, Fox Pelts),.

New Brunswick: Livestock (Cattle, Hogs & Weaners, Sheep), Fruit (Apples, Wild Blueberries, Cranberries, Strawberries),  Christmas Trees, Field VegetablesGrains & OilseedsGreenhouse (Vegetables, Potted Plants, Cut Flowers), Nursery (Container Shrubs, Evergreen & Deciduous Trees), Sod, Farm Raised Fur (Mink Pelts, Fox Pelts).

P.E.I.: Greenhouse (Vegetables, Potted Plants, Cut Flowers), Nursery (Container Shrubs, Evergreen & Deciduous Trees) and Farm Raised Fur (Mink Pelts).

Newfoundland & Labrador: Livestock (Cattle, Hogs & Weaners, Sheep), Fruit (Apples, Blueberries, Raspberries, Strawberries), Christmas TreesGrains & Oilseeds, Field Vegetables, Greenhouse (Vegetables, Potted Plants, Cut Flowers), Nursery (Container Shrubs, Evergreen & Deciduous Trees), and SodFarm Raised Fur (Mink Pelts, Fox Pelts).

In 2019 the overall program limits were increased from $400,000 to $1,000,000!  The first $100,000.00 advanced is interest free and an additional $900,000.00 is available at an interest rate of prime minus ¼%.  This program has helped many producers. Here is how the program can work for you.

To qualify for funds under the Advance Payments Program.

  • A producer MUST be enrolled in AgriStability or Production Insurance.  These BRM programs provide security for the APP advance.  (Production Insurance is only available for crop production.)
  • As a corporation or partnership the majority of interest held in the company must be by Canadian citizens or permanent Canadian residents and one individual must be of the age of majority.  The company must own the agricultural product and be responsible for its marketing.
  • As an individual producer you must be either a Canadian citizen or permanent Canadian resident, be of the age of majority, own the agricultural product and be responsible for its marketing.

How to determine your eligible advance amount?

  • Production calculations are done by multiplying the quantity of units you produce by the advance rate approved for the 2020/21 APP year.  Please refer to the APP Rates document below for your particular commodity’s current rate.
  • Advances are eligible for up to 100% of your 2020 AgriStability reference margin, or 60% of your Production Insurance insured value, on your first installment.  Second installments can be issued to “top up” your advance to your production calculations.
  • The eligible amount to be advanced will be either your production calculation or your limitation from AgriStability/Production Insurance, whichever is less.
  • $1,000,000.00 is the maximum advance allowed for any corporation, shareholder or individual.

How is your advance paid back?

  • For most commodities, repayments are due as you market your product.  Payment is due within 30 calendar days of receipt of payment or 60 calendar days from delivery to buyer, whichever is earlier. You have 30 calendar days from your date of payment to submit proof of sale, but no later than the end of the production period.
  • For continuous flow advances repayments are due 12 months from the date of advance but no later than September 30, 2021, even if this date is less than 12 months.  You have 30 calendar days from your date of payment to submit proof of sale but no later than September 30, 2021. Continuous flow advances are calculated on the minimum, consistent, number of marketable animals on the farm at one time.
  • Late payments, or payments without proof of sale, are permitted until the end of the production period (refer to your commodity’s forms for dates) but penalties will be applied.
  • Please call if you have any concerns about late payments or lack of proof of sale so we can let you know all of your options.
  • Any advance amount exceeding the interest free portion of $100,000.00 will be charged an interest rate of prime minus ¼% compounded.  Interest will be collected with your final payment on or before the end of your production period.
  • As your repayments occur they are applied to the interest free loan portion first.

How can you apply for the Advance Payments Program?

  • Complete the correct application below.  Select the correct form for your company structure (Corporation/Partnership or Individual) and your commodity (Livestock or Storable/Non-Storable). You can also contact the ACMA office at 1-902-895-0581 with any inquiries.
  • We are now accepting applications for the 2020/21 APP year for Greenhouse, Maple Syrup and Christmas Tree production.  Most other commodities open April 1, 2020, although Farm Raised Fur Advances cannot be issued before May 1, 2020.
  • The application fee is based on the total advance you received for the current program year.  No fees are charged for additional installments unless the new amount puts your total advance into a new tier.  The applicable fee plus 15% HST which will be deducted from your advance amount.  Full fee structure can be found in section 7 of the Terms & Conditions included on your application.

Application Forms – Basic Form Packages

All information and forms are available in French by contacting the ACMA office or through the link at the top of the page.

2020 Advance Payments Program Rates

Livestock Forms (Cattle, Sheep, Hogs ONLY)

Individual with Livestock
Corporation Partnership Cooperative with Livestock

All other commodities (Storable & Non-Storable – all non-livestock applications)

Individual with Storable NonStorable
Corporation Partnership Cooperative with Storable or Non-Storable Products

Storage Report: Due December 31, for Grain & Oilseed, Frozen Berries, and Apple producers who have not sold all of their product by December 31 and have decided to store it for sale at a later date.
Appendix 5B – Inspection Report for Storable Product

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