Okay.
Access to affordable credit is of major importance for growers to manage their cashflow and take advantage of marketing opportunities whenever they may present themselves. The federal government’s advance payment program, administered by CCGA and many other commodity groups, provides farmers with advances of up to $400,000, with $100,000 interest-free.
Feedback from the program from farmers is also generally very positive. But one area in which they are telling us this program could be improved is by increasing both the total limit and the interest-free limit. Fertilizer alone on the farm is up 50% this year.
Farm size has grown substantially over the last decade. In addition, input prices have risen significantly. For this to remain a relevant and effective cashflow management tool, we believe it is time now to increase these limits to more accurately reflect the current economics of farming in Canada.
Increasing the cash advance limits would allow producers to take advantage of more market opportunities with expanded credit, and it would better serve young farmers with higher debt loads.
Business risk management is another area with government support. While not perfect, the current suite of programs plays a valuable role in achieving the long-term sustainability of the industry. CCGA has done its own research in this area to help provide solutions to the challenges we see with the current suite of programs.
Thank you for your time. I look forward to your questions.