Program Details

Important Program Information for Producers

Eligibility

Any individual producer, who is a Canadian citizen or a permanent resident of Canada and who has reached the age of majority in the province of operation, can make application. Corporations, cooperatives and partnerships are also eligible. If you or any related producer have any outstanding defaulted advances from a previous production period with any organization, you are then ineligible for an advance under the Agricultural Marketing Programs Act (AMPA). Calves must be at foot to be eligible for application.

Production Period

Livestock advances are based on a 24-month program starting in 2011.

Withhold

To cover the potential default liability obligations of the program and to cover interest charges, CLAA will withhold 4 % on all advance amounts. All interest earned on the withhold amounts is
used to offset administration costs. The withhold amount will be issued back to the applicant (less any outstanding interest charges) upon full repayment of this advance, provided the advance has not gone into default. In the event that this advance goes into default, the withheld amount will be applied against the interest and principal amounts owing, as specified in AMPA.

Inspection

An inventory inspection may be required to verify compliance with the AMPA Program.

Producer Payments

Cheques to applicants will be issued less applicable application fees and withhold amounts.

Default

Advances must be repaid on or before March 31^st of the 24-month production period. Failure to do so will result in the producer’s account being declared in default. If an account is placed into default, the producer will be responsible to repay the outstanding amount of the advance plus the following:

1. Any interest charges on the outstanding advance calculated from the day the advance was issued until the advance is repaid;
2. Costs incurred by the Administrator to recover the outstanding advance (a standard rate of 5 % will be applied to the outstanding balance as of 45 calendar days after default), interest charges and applicable legal costs.

Advance Limits

Producers can qualify for up to a maximum of $400,000 with the first $100,000 interest free. The interest free provision and maximum advance is cumulative over all organizations under the Advance Payments Program.

The maximum cumulative advance that can be issued to an applicant, including current outstanding advances and new eligible advances can at no time exceed $400,000.

Administration Fees

CLAA will charge an administration fee for the delivery of the program. The fees are as follows:

1. The application fee is $150.00. If cancellation of the application takes place after the cheque is printed, the administration fee will remain payable by the producer to CLAA.
2. A $75.00 fee per application will be applied for each subsequent application.

Security

A producer must be enrolled in AgriStability in order to get a livestock Advance. Only the producer's livestock may be used as security with the exception of a “default”. Security will then become the producer’s AgriStability.

Interest Charges

Interest bearing advance accounts will have the interest added monthly and shown on their accounts. The interest rate, for the advance portion that will be interest bearing, is the Canadian
Imperial Bank of Commerce prime lending rate, calculated daily and compounded monthly.

Repayment

The amount the producers must repay to CLAA is the total of the cash advance cheque(s), plus the 4% withhold amount, plus the administration fee and any interest, if owing. Producers are required to repay their advances as the livestock for which the advance was taken is sold.

Producers must make their livestock advance repayments directly to CLAA and include with the repayment a supporting sales receipt. Repayments will first be applied to any defaulted accounts outstanding then against any previous outstanding amounts, and then applied to the interest free portion of an advance.