Financial Assistance Programs | Ontario Pork
Saturday, April 13, 2024
    

Financial Assistance Programs for Pork Producers

Ontario pork producers are encouraged to explore the available financial assistance programs designed to support their operations. These programs provide aid in various aspects, from managing risks to facility enhancements and sustainable practices. By tapping into these opportunities, producers can access crucial funding that can contribute to the growth and success of their operations.


Financial Assistance Programs


Advance Payments Program (APP)

The Advance Payments Program (APP) provides producers with a cash advance on the value of their agricultural products during a specified period. The APP is a federal financial loan guarantee program that gives producers easier access to credit through cash advances.

On May 10, 2023, the Minister of Agriculture and Agri-Food announced a temporary increase to the interest-free limit for advances under the Advance Payments Program (APP). The change will help agricultural producers with significant financial challenges, including high input costs and rising interest rates.

Following an increase to the interest-free limit made in 2022 bringing it from $100,000 to $250,000 for the 2022 and 2023 program years, it has been further increased to $350,000 for the 2023 program year. This is the portion of advances on which the Government of Canada pays the interest on behalf of producers. This additional increase to the interest-free limit will generate more savings for farmers so they can maintain production to sustain their livelihoods through challenging times.

Program is managed by Agriculture Credit Corporation(ACC)and offers an interest free loan of up to $350,000 this year with an additional $650,000 available at Prime Interest Rate.

Visit Agriculture Credit Corporation (ACC) for more information about the APP or call ACC toll-free at 1-888-278-8807 to process an application over the phone.
 

Commodity Loan Program (CLP)

The Commodity Loan Program was developed to assist Ontario farmers in financing their crop planting, cultivating, and harvesting expenses. This program allows producers access to lower cost financing (prime rates) to supplement cash flow throughout the year, while paying less interest. Generally funding is available beginning in December each year and is dependent on what you are producing in the current year.

The program is managed by Agriculture Credit Corporation(ACC)with eligibility to receive up to $750,000 at Prime Interest Rate per year and up to 22 months for repayment.

Visit Agriculture Credit Corporation for more information about the CLP or call ACC toll-free at 1-888-278-8807 to process an application over the phone.
 

AgriStability

This program protects producers from large declines in their farming income due to market conditions, production loss or increased costs of production. It is based on every farm’s individual situation over the whole farm.

The program generates a payment when your production margin is less than 70 per cent of your reference margin which is calculated using the Olympic average of production margins from the previous five years. If your production margin falls below your payment trigger, AgriStability will pay you 70 per cent of the difference between your production margin and your payment trigger.

There is the ability to apply for an interim payment:

  • Agristability applications for interim payments are promoted as being available after 6-months of financials are complete
  • The funding is between 50% and 75% of anticipated payouts
  • In extreme cases the 6-month requirement can be shortened (case by case basis)

In Ontario, AgriStability is delivered by Agricorp. Visit Agricorp for more information or call 1-877-275-1380.
 

Risk Management Program

Ontario's Risk Management Program (RMP) helps producers manage risks beyond their control, like fluctuating costs and market prices. RMP for livestock was designed in consultation with representatives of the cattle, hog, sheep and veal industry in Ontario. RMP for livestock works like insurance to help Ontario producers offset losses caused by fluctuating commodity prices and production costs. Participants pay premiums based on their insured production and their chosen coverage level.

Upcoming deadlines for 2023 program year if you are already enrolled:

  • July 31, 2023 – Pay livestock premium and report sales
  • October 31, 2023 – Report sales
  • January 31, 2024 – Pay livestock premium and report sales

The payouts from RMP occur as follows:

  • Q1/Q2 – First week of September
  • Q3 – December
  • Q4 – March

The program is delivered by Agricorp. For more information visit Agricorp or call 1-888-247-4999.
 

Hedging Programs

Hedging Programs are risk management strategies commonly used in the pork industry to mitigate the potential negative effects of price volatility. A producer initiates the hedge by selling futures contracts to cover the livestock they plan to sell, and when the hogs are ready for the market, they buy back the short futures contracts and simultaneously sell the hogs in the cash market.

These programs are offered through Ontario Pork, the National Bank of Canada, and RBC Dominion Securities Inc.

For more information:

Visit Forward Pricing - Ontario Pork or call 1-800-862-9001.

Visit Commodity Swaps – National Bank of Canada or call 1-844-394-4556.

Visit Hedging with Lean Hogs Futures – RBC Dominion Securities Inc. or call 1-866-989-0997.

These financial programs are strategically tailored to provide producers with vital funding that can contribute to the growth and success of their operations. Don’t miss out on the opportunity to apply to these funding programs and pave the way to a more prosperous tomorrow.


Sustainable Canadian Agricultural Partnership Funding Programs


Sustainable Canadian Agricultural Partnership

The Sustainable Canadian Agricultural Partnership (Sustainable CAP) is a new $3.5-billion, 5-year agreement (April 1, 2023 to March 31, 2028), between the federal, provincial and territorial governments to strengthen the competitiveness, innovation, and resiliency of the agriculture, agri‐food and agri‐based products sector. The agreement includes $1 billion in federal programs and activities and $2.5 billion in cost-shared programs and activities funded by federal, provincial and territorial governments.

Sustainable CAP focuses on the 5 key priority areas agreed to in The Guelph Statement:

  • Building sector capacity, growth and competitiveness
  • Climate change and environment
  • Science, research and innovation
  • Market development and trade
  • Resiliency and public trust

Ontario-specific funding opportunities can be found at https://www.ontario.ca/page/sustainable-canadian-agricultural-partnership
 

Biosecurity Enhancement Initiative

The Biosecurity Enhancement Initiative (BEI) is a new, cost-share offering that will help farmers, food processors, and other essential farm-supporting agri-food businesses protect their operations against disease, enhance operational resilience and heighten public trust in the food supply system.

This program is being offered through the Sustainable Canadian Agricultural Partnership (Sustainable CAP) and will be delivered by the Ontario Ministry of Agriculture, Food and Rural Affairs (OMAFRA) .

Total funding amounts: Ontario will receive up to $7.5 million in total.

Application intake begins: September 19, 2023
Note that applications will be accepted on an ongoing basis, subject to funding availability.

Further details and application information is available on the Biosecurity Enhancement Initiative page or by calling 1-877-424-1300
 

Increasing Deadstock Capacity Initiative

Applications timelines:

  • Intake begins: September 21, 2023.
  • Intake closes: February 1, 2024

(Note that all approved projects must be completed by February 1, 2025.)

Total funding amounts: Ontario will receive $1.5 million in total over two years to help improve the removal, handling, and disposal of deadstock across the province.

Further details and application information can be found on the Increasing Deadstock Capacity Initiative page on the Agricultural Adaptation Council website.

This program is being offered through the Sustainable Canadian Agricultural Partnership (Sustainable CAP). The cost-share funding initiative will provide opportunities for the deadstock industry to streamline operations and improve accessibility by increasing capacities and establishing new service standards.

Agri-Tech Innovation Initiative

Applications timelines:

  • Intake begins: February 15, 2024
  • Intake closes: March 28, 2024 11 am EST

The purpose of the Agri-Tech Innovation Initiative (the Initiative) is to support growth and productivity through innovation, advanced manufacturing, improved food safety and enhanced cyber security, and energy efficiency within the agri-food sector.

The Initiative will be delivered under three streams, as follows:

Stream 1 – Agri-Tech Innovation (total Eligible Costs per Project less than $100,000)
Stream 2 – Agri-Tech Innovation (total Eligible Costs per Project $100,000 and greater)
Stream 3 – Agri-Tech Energy Costs Savings

Information Webinars:
12:00 p.m.  EST on Thursday, February 22, 2024 or
7:00 p.m. EST on Wednesday, March 6, 2024
 

AgriRecovery

AgriRecovery is a framework that allows federal, provincial and territorial governments to work together on a case-by-case basis to assess natural disasters (e.g., extreme weather, disease, pests, etc.) affecting Canadian farmers and respond with targeted, disaster-specific programming when assistance is needed beyond existing programs (AgriStability, AgriInvest, AgriInsurance, CFIA, etc.).
 

AgriInvest Risk Management Program

AgriInvest is a self-managed producer-government savings account that allows producers to set money aside which can then be used to help risk manage small income shortfalls, or to make investments to reduce on-farm risks. Producers will continue to have the flexibility to withdraw funds at any time throughout the year.

In Ontario, AgriInvest is delivered by the federal government.
 

AgriAssurance

The small and medium-sized enterprises (SME) component of the AgriAssurance program supports businesses to adopt assurance systems and supporting tools to make verifiable claims to meet export market requirements or domestic markets for Indigenous Peoples.

The program aims to:

  • increase and diversify exports to markets where Canada has Free Trade Agreements are in place
  • support industry to develop, verify and integrate assurance systems to address market and regulatory requirements (for example, food safety, plant and animal health surveillance, animal welfare, environmental sustainability, traceability, market attributes and quality standards)
  • enable industry to make credible, meaningful and verifiable claims about the health, safety, and quality of Canadian agriculture products

The AgriAssurance program is delivered through the Sustainable CAP agreement.
 

Grow Ontario Market Initiative

The purpose of the Grow Ontario Market Initiative is to support primary producers, processors and industry organizations to grow their business through marketing analysis and planning, new product development and marketing activities to find, develop and capture new or expand domestic or export market opportunities.

You may use the funding to grow your business through:

  • marketing analysis and planning
  • new product development
  • marketing activities

Funding for the Initiative comes from the Sustainable Canadian Agricultural Partnership.


These financial programs are strategically tailored to provide producers with vital funding that can contribute to the growth and success of their operations. Don’t miss out on the opportunity to apply to these funding programs and pave the way to a more prosperous tomorrow.