Proposed Amendments to the Advance Payments Program to Benefit the Majority of Producers (October 27, 2005)

Ottawa, October 27, 2005 – Amendments to the Agricultural Marketing Programs Act (AMPA), introduced today in the House of Commons, would provide an enhanced cash advance tool to Canadian producers to assist them to operate profitably in the short and long term.


The proposed amendments would expand coverage to include producers of most agricultural products, including livestock and storable crops such as blueberries and cranberries, and increase the amount of cash advances, including the interest-free component of those advances, available to producers. As well, the proposed amendments would consolidate the Advance Payment Program (APP) and the Spring Credit Advance Program (SCAP) under the Act.


“By responding to current realities of agricultural producers, we are proposing to allow a broader range of products and larger advances to help ensure greater stability in the operation of many farms across the country,” said Agriculture and Agri-Food Minister Andy Mitchell. “Measures to streamline the programs will also make it easier for producers to access available benefits.”


The amended APP will continue to provide producers with interest-free loans at optimal times in the specified 18-month production period. Advances can be obtained during the spring when farmers are experiencing input costs related to producing the agricultural product and, at or after harvest to relieve cash flow difficulties until the product is marketed. The advances will also allow the producers to store or hold their agricultural product, and sell it throughout the production period when marketing opportunities may provide greater returns to the producer.


Budget 2005 allocated $26 million per year over four years to include livestock in AMPA. The proposed legislation goes further, adding storable crops to the list of eligible agricultural products and providing greater interest-free coverage.


The proposed amendments respond to recommendations of an evaluation of the AMPA, tabled in Parliament in April 2004, and further developed following consultation with the industry.


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For more information, please visit http://www.agr.gc.ca or contact:


Media Relations
Agriculture and Agri-Food Canada
(613) 759-7972
1-866-345-7972


Matt Tolley
Minister Mitchell's office
(613) 759-1059