The government-backed advance payment program, commonly referred to as a cash advance, is a tool used by farmers to balance cash flow and help reduce pressure on marketing decisions. In recent decades it has grown from a small program offered by the Canadian Wheat Board (CWB) for wheat, barley and durum to a program now offered across Canada by more than 30 different organizations. covering 45 products, including livestock.
Dave Gallant knows all about the cash advance program. He is the CFO of the Canadian Canola Growers Association (CCGA), which administers the cash advance on behalf of the federal government in the four western provinces. Gallant was at the Agricultural Excellence conference in Winnipeg, Manitoba, where he spoke a little about the history of the CCGA and the importance of the cash advance program, especially for young farmers.
According to Gallant, the program is well suited to newbie farmers because it offers increased marketing flexibility. Access to funds also doesn’t require collateral requirements beyond inventory, adds Gallant.
He continues, “There is this saving of interest which, in my opinion, is good for every farmer, but it is more good for a young farmer. The last thing that probably makes it more beneficial to young farmers than a bank loan or a farm loan is that these products require regular monthly payments. “With this program, you only pay when you sell the product,” he says.
Gallant explains that while canola growers certainly handle the canola advances, the group also administers the program for grain crops (wheat, durum, barley), specialty crops, such as pulses, mustard and fodder crops, as well as for livestock. , including cattle, bison, sheep, goats and pigs.
Listen to the full interview with Dave Gallant, CCGA Director of Finance and Operations below.