Ontario farmers have access to a number of farm finance programs. Including:
Advanced Payment Program (APP)
The Advanced Payment Program can help farmers manage cash flow by providing up to $250,000 in interest free loans and up to an additional $750,000 at the prime lending interest rate. These loans can be paid back over an 18-month period and are available to over 4,000 commodities such as grains and oilseeds, vegetables, livestock, ginseng, hemp and potted plants.
Commodity Loan Program (CLP)
The Commodity Loan Program can assist farmers in financing their crop planting, cultivating, and harvesting expenses by providing up to $750,000 in loans to finance eligible inputs, repaid over a 22-month period at the prime lending interest rate.
Farmers can contact the Agricultural Credit Corporation (ACC) for additional information and to apply for the APP or the Commodity Loan Program by calling 1-888-278-8807.
Canadian Agricultural Loans Act (CALA) Program
The Canadian Agricultural Loans Act (CALA) Program is a loan guarantee program designed to increase the availability of loans to farmers and agricultural co-operatives.
Under the CALA program, the federal government guarantees to the lender, repayment of 95% of a net loss on an eligible loan. For each borrower, CALA loans are limited to a maximum of $500,000 if it is used for purchasing land and constructing or improving on farm buildings. For all other loan purposes, the maximum loan is $350,000.
Financial institutions such as banks and credit unions offer CALA loans to borrowers.
For more information visit Agriculture and Agri-Food Canada’s website or call their toll-free number at 1-866-367-8506.
Farm Debt Mediation Service
Farmer’s who are experiencing financial hardship may also consider using Agriculture and Agri-Food Canada’s Farm Debt Mediation Service which offers financial counselling and mediation services to farmers who are having difficulties meeting their financial obligations.
To be eligible for the Farm Debt Mediation Service, farmers must farm commercially and meet at least one of the following two criteria:
- You have stopped or are no longer able to make your payments on time.
- If sold, the value of your property would not be enough to cover the cost of your debts.
For more information visit Agriculture and Agri-Food Canada’s website or call their toll-free number at 1-866-452-5556.
OFA Benefit Program
OFA’s Benefit Program is one advantage of membership in Ontario’s leading advocate for Ontario agriculture. Our Benefit Program offers a wide range of services and promotions exclusively for OFA members, delivering additional value to your farm business.
More details about the exclusive offers from Scotiabank and CWB National Leasing are available on our Benefit Program webpage.