APP Cash Advance

The Advance Payments Program (APP) is a federal loan guarantee program that provides agricultural producers with easy access to low-interest cash advances. Under the program, you can access up to $1,000,000 per program year in total advances based on the value of your eligible agricultural products, with the Government of Canada paying the interest on the first $100,000 of your advance. Advances are repaid as you sell your agricultural products, with up to 18 months to fully repay the advance for most commodities.

As a farmer, an APP cash advance can help you to meet your financial needs, such as farm input costs, immediate financial obligations and product marketing costs. It can also allow you to make the decision to sell your agricultural products based on market conditions rather than the need for cash flow.

APP cash advances are available through 35 participating producer organizations that are APP Administrators across Canada. Manitoba Crop Alliance is one of the 35 administrators, and one of three administrators in Manitoba.

To learn more, visit the Government of Canada website here.

Under the Advance Payments Program (APP), you may be eligible to receive up to $1,000,000, with:

• the federal government paying the interest on the first $100,000 per program year; and
• preferential interest rates on advance amounts over $100,000.

Your cash advance is calculated based on up to 50 per cent of the anticipated value of the eligible agricultural products that you are producing or have in storage. You cannot have more than $1,000,000 in advances outstanding at any one time with any APP administrator.

Your advance must be secured. The security required will depend on the type and state of the agricultural product at the time you apply.

• The agricultural product on which the advance is based is always required as security.
• For advances on agricultural products that are in production, additional security is required. This includes one or more of the potential proceeds from a relevant business risk management program (AgriInsurance, AgriStability or Global Ag Risk Solutions) or another acceptable form of security.

The advance amount you are eligible to receive will be limited by the level of security you are able to provide.

If you are declared in default, the security, including assigned program payments, may be used to pay off your advance.

For more information on acceptable forms of security, please contact our office.

Farmers in Manitoba can apply for a cash advance on over 35 different crop kinds, including cereals, grain corn, oilseed crops, pulses, specialty crops, hay and grasses, and honey.

No. Any eligible farmer who meets the criteria outlined in the application form can apply for an advance with Manitoba Crop Alliance. To be eligible, farmers must be a Canadian citizen or permanent resident.

A corporation, co-operative or partnership can apply, of which the majority interest is held by Canadian citizens or permanent residents. Applicants must also be the age of majority in the province of operation, have produced/be producing and own the agricultural product, and be responsible for its marketing.

The advance rates can be found on the Rates & Fees page. The advance rates are calculated by Agriculture and Agri-Food Canada (AAFC) and are intended to reflect 50 per cent of the selling price for a given crop type. Advance rates are determined at the beginning of a program year but can be adjusted by AAFC at any time.

Once staff work with you to have a fully completed application on file, funds can be advanced in as little as three to five business days.

You can choose to receive a cheque, which we will mail (via Canada Post Xpresspost) or you can pick up at the office. Direct deposit to your banking institution is also available (unless otherwise indicated by your banking institution).

APP cash advances must be repaid as the crop types listed on your application and that were advanced on are sold. Payment to Manitoba Crop Alliance should be made 30 days from the date producer received payment, without missing the final repayment deadlines listed in the Dates and Deadlines page. Repayments made outside of those deadlines may be subject to an interest penalty. (Rates & Fees page)

To calculate the minimum repayment, multiply the Advance Rate (Rates & Fees page) by the number of units sold.

You have a few options. You can mail a cheque, including your APP ID number and any receipts (if necessary) to Manitoba Crop Alliance. Our mailing address is Box 188, Carman, Manitoba, R0G 0J0. You can also drop off payment in-person at our office location at 38-4th Avenue NE, Carman, Manitoba. If you are dropping by before or after office hours, there is a secure drop box available at the front of our building.

You can also make payment through your financial institution (Credit union or BMO). If you have questions about setting up Manitoba Crop Alliance as a payee, call us at 1-204-745-6661 or 1-877-598-5685.

Proof of sale must accompany repayments made on crop commodity advances between Feb. 1 and Sept. 30, 2025 for the 2024 program year. The proof of sale (receipts) must be in the name the advance is taken out on.

If you do not meet the obligations of the application and repayment agreement, your account will be placed in default. Several things will occur, including:

• Default interest is charged at prime +1% on the outstanding balance from the date the advance was issued to the date of default.
• Default interest is charged at prime +3% on the outstanding balance from the date of default until repaid in full.
• A one-time default management fee of 3% is applied to the outstanding balance after the default notice.
• When in default, you will be ineligible to apply for a future advance for a set period. The length of time will depend on how long it takes for full repayment of the advance, including any fees and default history. Please refer to the Terms and Conditions of your APP cash advance application for further information.

Manitoba Crop Alliance will periodically mail statements to each of our clients. However, if you wish to know the outstanding balance on any given day, please call the office at 1-204-745-6661 or toll free 1-877-598-5685 where our staff can assist you.

In addition to guaranteeing the repayment of APP cash advances and paying the interest on the first $100,000 advanced to each producer per program year, Agriculture and Agri-Food Canada’s (AAFC) Financial Guarantee Programs Division (FGPD) is responsible for providing federal oversight by working together with all APP Administrators to ensure the program is administered in a manner that:

• is efficient with respect to the cost to government.
• is focused on providing benefit to Canadian producers.
• respects the annual Advance Guarantee Agreements, Program Guidelines, the Agricultural Marketing Programs Act and its Regulations.

APP Administrators sign annual tripartite agreements with their Financial Institution and the Minister of Agriculture, which authorizes them to deliver the program to producers. Once their agreement is signed, APP Administrators become responsible for the day-to-day delivery of the program. They assess a producer’s eligibility, co-ordinate the application process, determine advance amounts, and manage the producer’s file until full repayment, while respecting the terms and conditions of their agreements.