On March 23, the federal government announced it was increasing the lending capacity of Farm Credit Canada, a federal crown corporation, by up to $5 billion to help farmers and food processors cope with the COVID-19 pandemic.
Farm Credit Canada has put in place:
- a deferral of principal and interest payments up to six months for existing loans; or
- a deferral of principal payments up to 12 months
- access to additional credit up to $500,000, secured by general security agreements
Advance Payments Program
The federal government also announced up to $173 million in loan repayment deferrals under the Advance Payments Program (APP) to help farmers with an outstanding APP loan due by April 30.
The new deadlines for outstanding Advance Payments Program loans are:
- September 30, 2020: 2018 cash advances for grains, oilseeds, and pulses
- September 30, 2020: 2018 cash advances for cattle and bison
- October 31, 2020: 2019 cash advances on flowers and potted plants
Farmers who have outstanding interest-free loans will be able to apply for an additional $100,000 interest-free portion in financing for 2020-21 if their total advances under the APP remain under a $1 million cap.