CFA : Welcomes Extensions on APP Repayment

OTTAWA – The Canadian Federation of Agriculture  commends the federal government for responding to requests of cattle and hog producers on the need for flexibility with regard to Advance Payment Program loans.

 

Today Agriculture and Agri-Food Minister Gerry Ritz and  Minister of State (Agriculture) Jean-Pierre Blackburn announced two Stays of Default that will come into effect Oct. 1, 2010. Cattle producers will have until Mar. 31, 2012 to repay amounts owed, with regular payments to begin eight months from the start of the Stay. Hog producers will have until Mar. 31, 2013 to repay amounts owed, with regular payments to begin 18 months from the start of the Stay.

 

“Farm leaders are pleased that the government has taken action to alleviate some of the immediate cash flow pressures facing our cattle and hog producers,” said Ron Bonnett, CFA President. “Coming out of an extremely difficult period of market challenges, this announcement will bring much-needed breathing room so that producers can concentrate on farming and future business plans.”

 

“The CFA has been calling for several short-term measures to address business risk management shortfalls affecting various farm commodities, and the APP extensions are a key part of this approach. We reiterate the exceptional importance of making additional short-term changes to the BRM suite so that our livestock and horticulture sectors can emerge from this current period of economic hardship stronger than ever,” added Bonnett.

 

The CFA encourages producers to consult with their farm organizations and APP administrators to learn more about today’s announcement and consider options and scheduling for repayment. 

 

Members of the CFA appreciate the ongoing efforts of Ministers Ritz and Blackburn in working to bring about stability in the livestock sector, both in terms of pursuing new market opportunities and in recognizing requirements in times of economic uncertainty.

 

“The CFA will meet with the Ministers over the coming months to discuss future opportunities for agriculture, one of Canada’s vital economic pillars. Investment in the next generation of agriculture policy is integral to Canada’s long-term economic growth,” said Bonnett.

 
Source : Canadian Federation of Agriculture