Minister MacDonald announces interest-free limit under the Advance Payments Program will be set at $250,000 for 2026 for all non-canola advances

OTTAWA, ON, April 1, 2026 /CNW/ - Today, the Honourable Heath MacDonald, Minister of Agriculture and Agri-Food, announced that the Government of Canada will set the interest-free limit of the Advance Payments Program at $250,000 for the 2026 program year, for all non-canola advances. This is the portion of advances on which the Government of Canada pays the interest on behalf of producers.

The Advance Payments Program gives producers easy access to low-cost cash advances of up to $1 million, based on the expected value of their agricultural products. Under the program, producers typically receive the first $100,000 interest-free. The higher limit announced today will result in interest savings for producers, reducing the cost of the program and increasing access to cash flow to help cover their costs until they sell their products.

With this support at the beginning of the production cycle, farmers will be able to use their advances to purchase essential inputs and cover their costs to support production this growing season. More importantly, the program offers marketing flexibility, enabling producers to sell their agricultural products when it is most advantageous, rather than being forced to sell for immediate cash needs, which is especially crucial in times of uncertainty. The Government of Canada remains committed to helping producers manage financial challenges so they can continue driving the economy.

Quote

"As Canadian producers get ready for the growing season, our government is making sure they have the support and tools they need. By increasing the interest-free portion of the Advance Payments Program, we're helping farmers manage costs, while giving them more flexibility to market their products on their terms."

-      The Honourable Heath MacDonald, Minister of Agriculture and Agri-Food

Quick facts

• In September 2025, in response to the imposition of tariffs on Canadian canola products, the Government of Canada increased the interest-free portion of the Advance Payments Program to $500,000 for canola advances, for the 2025 and 2026 program years.
• Under the Advance Payments Program, cash advances are calculated based on up to 50% of the anticipated market value of eligible agricultural products that will be produced or are in storage.
• The program is delivered through 24 industry-led associations across Canada.
• Advances are available on over 500 crop and livestock products, as well as honey, maple syrup and other commodities.
• This measure is expected to provide approximately 8,618 producers with a combined $37.4 million in additional interest savings for the 2026 program year, with average incremental savings of around $4,340 per producer.
• Producers also have access to a suite of business risk management (BRM) programs to help them manage significant risks that threaten the viability of their farms and are beyond their capacity to manage. The suite includes the core programs of AgriInsurance, AgriStability and AgriInvest.
• BRM programs are the first line of support for producers against income and production losses, helping them manage risks that threaten the viability of their farms.

Associated links

• Advance Payments Program
• Business risk management programs

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SOURCE Agriculture and Agri-Food Canada

Contacts: For Media: Jennica Klassen, Director of Communications, Office of the Minister of Agriculture and Agri-Food, [email protected]; Media Relations, Agriculture and Agri-Food Canada, Ottawa, Ontario, 613-773-7972, 1-866-345-7972, [email protected]