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Is the Commodity Loan Program still available? |
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The Commodity Loan Program is alive and well and offers the producers of Ontario a true alternative to traditional financing sources such as input suppliers and financial institutions.
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Why do I need receipts from crop sales for the Advance Payments Program? |
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Receipts from crop sales and livestock sales are required by Agriculture and Agri-Food Canada under terms of legislation to verify date of sales and amount of product sold.
To receive the interest-free benefit under the Advance Payments Program producers must repay advances when the commodities secured under the loan are marketed. Producer(s) is/are obligated to ensure that repayments are made within 10 business days after receipt of sales proceeds, or within 45 days of delivery to the buyer, whichever is the earlier, and that repayments are accompanied by sales receipts.
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Why do you pay the Production Insurance premium for the Commodity Loan Program and not the Advance Payments Program? |
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ACC Farmers’ Financial provides this additional service under the Commodity Loan Program to ease producers’ cash flow and administrative burden.
The Advance Payments Program requires producers to participate in the Canadian Agricultural Income Stabilization (CAIS)/AgriStability program
for livestock and possibly for crops.
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What is covered under the administrative fees for each program? |
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Several services are provided under your admin fee including credit checks, lien searches, lien registration, inspection charges, as well as administration and compliance services.
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Why is the interest rate (prime minus ¼) fixed? Was it not variable in the past? |
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Commodity Loan customers have asked us to provide a consistent rate of interest with the lowest administrative fees possible in order to better manage cash flow and repayment obligations.
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What’s available to finance crops that are farm-fed? |
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Farm-fed crops are eligible for financing under the Commodity Loan Program.
Farm-fed crops are no longer included in the Advance Payments Program since advances are now available for livestock (pork, cattle, lamb and market sheep). |
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