Canadian Prime Minister Justin Trudeau this week announced new measures to support farmers and agri-food businesses in Canada facing financial hardship due to the impacts of the COVID-19 pandemic.
Farm Credit Canada will receive support from the Government that will allow for an additional $5 billion in lending capacity to producers, agribusinesses, and food processors.
This will offer increased flexibility to farmers who face cashflow issues and to processors who are impacted by lost sales, helping them remain financially strong.
In addition, all eligible farmers who have an outstanding Advance Payments Program loan due on or before April 30th will receive a Stay of Default, allowing them an additional six months to repay the loan.
This measure, which represents $173 million in deferred loans, will help keep more money in farmers’ pockets during these critical months.
The Advance Payments Program is a financial loan guarantee program that provides producers easy access to credit through cash advances.
