Hon. Heath MacDonald, Minister of Agriculture and Agri-Food, has announced that the Government of Canada will set the interest-free limit of the Advance Payments Program at $250,000 for the 2026 program year, for all non-canola advances. This is the portion of advances on which the Government of Canada pays the interest on behalf of producers.

The Advance Payments Program gives producers easy access to low-cost cash advances of up to $1 million, based on the expected value of their agricultural products. Under the program, producers typically receive the first $100,000 interest-free. The higher limit announced on April 1 will result in interest savings for producers, reducing the cost of the program and increasing access to cash flow to help cover costs until they sell their products.

With this support at the beginning of the production cycle, farmers will be able to use their advances to purchase essential inputs and cover their costs to support production this growing season. More importantly, the program offers marketing flexibility, enabling producers to sell their agricultural products when it is most advantageous, rather than being forced to sell for immediate cash needs, which is especially crucial in times of uncertainty.

Quick facts

• -  In September 2025, in response to the imposition of tariffs on Canadian canola products, the Government of Canada increased the interest-free portion of the Advance Payments Program to $500,000 for canola advances, for the 2025 and 2026 program years.
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• -  Under the Advance Payments Program, cash advances are calculated based on up to 50% of the anticipated market value of eligible agricultural products that will be produced or are in storage.
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• -  The program is delivered through 24 industry-led associations across Canada.
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• -  Advances are available on more than 500 crop and livestock products, as well as honey, maple syrup and other commodities.
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• -  This measure is expected to provide approximately 8,618 producers with a combined $37.4 million in additional interest savings for the 2026 program year, with average incremental savings of around $4,340 per producer.
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• -  Producers also have access to a suite of business risk management (BRM) programs to help them manage significant risks that threaten the viability of their farms and are beyond their capacity to manage. The suite includes the core programs of AgriInsurance, AgriStability and AgriInvest.

Source:  Agriculture and Agri-Food Canada April 1, 2026 news release