by Morinville News Staff
Prime Minister Justin Trudeau announced new measures to support farmers and agri-food businesses in Canada facing financial hardship due to the impacts of the COVID-19 pandemic.
“Farmers and food producers work hard to put food on tables across our country, and they should not have to worry about being able to afford their loan payments or having enough money to support their own families,” Trudeau said in a media release Monday. “We are taking action now to give them more flexibility to meet the challenges ahead in these times of uncertainty.”
Farm Credit Canada will receive support from the Government of Canada that will allow for an additional $5 billion in lending capacity to producers, agribusinesses, and food processors. The government believes this will offer increased flexibility to farmers facing cashflow issues as well as for processors impacted by lost sales.
All eligible farmers who have an outstanding Advance Payments Program (APP) loan due on or before April 30 will receive an additional six months Stay of Default to repay the loan.
Farmers who still have interest-free loans outstanding will have the opportunity to apply for an additional $100,000 interest-free portion for 2020-2021, as long as their total APP advances remain under the $1 million cap.