Federal Agriculture and Agri-Food Minister Marie- Claude Bibeau announced yesterday a Stay of Default for the 2018-2019 Advance Payment Program. The Stay extends the repayment deadline for cash advances issued to grain, oilseed, and pulse crop producers, The repayment deadline will now be March 31st, 2020 pushed back from the original date of September 30th, 2019.
A Stay of Default means that farmers with a 2018 cash advance now have an additional six months to repay their advance. Details of the Stay of Default include:
1. The Stay comes into effect on August 15, 2019;
2. The end of the production period for 2018-19 eligible advances will be extended from September 30, 2019, to March 31, 2020;
3. The interest-free benefit will be maintained throughout the six-month extension;
4. Effective August 15, 2019, farmers who are eligible for the Stay will be able to make a cash repayment on their 2018-19 advance without providing proof of sale documentation or facing cash repayment penalties.
While conditions of the Stay come into effect today, all other existing terms and conditions associated with the 2018-19 APP remain in effect. Repayments on existing advances must be made every time a farmer sells the commodity associated with their advance, including advances that are eligible for the Stay of Default. 2018 advances that include interest-bearing portions will continue to accumulate interest throughout the extension.
Producers with questions about their advances or the Stay of Default are encouraged to call the Canadian Canola Growers Association at 1-866-745-2256
