The Canadian Government has announced initiatives to strengthen and support the canola sector in the country.
As part of the new initiatives, the government intends to amend the Agricultural Marketing Programs Regulations in order to temporarily increase loan limits under the Advance Payments Program (APP).
According to the changes to the loan limits under APP for 2019, advances of up to C$1m ($743,885) will be available on all commodities, which is reported to be more than double the previous limit of C$400,000 ($297,520).
More so, the first C$100,000 ($74,380) will remain interest-free on all commodities excluding canola. The programme’s interest-free component for canola will be up to C$500,000 ($371,900).
These changes will help to ease the cash flow pressures that farmers are facing and also aid them in managing the impacts of market disruptions in key export countries.
Last year, Canada’s canola producers exported C$11bn ($8.1bn) worth of canola to more than 50 countries.
Canada Minister of Agriculture and Agri-Food Marie-Claude Bibeau said:
“Farmers deserve our support as we work to maintain full market access to China and create new opportunities for them to grow their business.“We are ensuring that farmers have the security they need leading into this year’s season to help manage their cash flow, giving them the flexibility to sell their canola at the best time and at the best price.
“Our government will always stand up for Canadian interests and support hardworking farmers as we work closely with the grains sector, exporters and provinces to secure unrestricted market access for Canada’s high-quality canola.”
Bibeau also revealed plans to advance Canada’s agricultural trade during a visit to Japan to participate in the G20 Agriculture Ministers’ Meeting.
