Story Posted: May 19, 2006

Spring Credit Advance a relief for cash strapped farmers

Federal agriculture minister, Chuck Strahl's announcement yesterday of changes to the Spring Credit Advance Programs (SCAP) will be welcome relief for cash strapped farmers as they complete their spring seeding. The federal government is doubling the eligible maximum for producers to $100,000.00, up from $50,000.00 and extending the repayment period to 18 months.

Brian Tischler is president of the Canadian Canola Growers Association and a farmer from Mannville, Alberta. He's encouraged by the announcement "because it shows that the government has been listening to us and is aware of our financial crisis".

The new program, referred to as the Enhanced Spring Credit Advance Program, or ESCAP, will maintain many elements of the previous program and will require producers to demonstrate crop insurance coverage in order to be eligible for the program.

Payments from the program will occur with the first installment of 60% based on intended seeded acreage and the final 40% based on the confirmed seeded acres report that must be forwarded to the administrator. Producers will also have the option to receive a final installment after harvest based on the amount of crop held in storage, similar to the Advance Payments Program (APP). All crops currently eligible under the SCAP and APP would be eligible under ESCAP.

Tischler is pleased with many of the other proposed changes to the Agricultural Marketing Programs Act that Minister Strahl also announced. The Alberta grower says the changes should make the programs "more user friendly and more reflective of today's farming operations and the ongoing need for cash flows".

Canadian Canola Growers Association (CCGA) is one of the program's administrators. CCGA general manager Ernie Doerksen says that "while not all of the necessary financial details have been finalized, the CCGA will do everything possible to get cash into producers' hands quickly".

Growers who have already applied for advances under the current SCAP advance will have the option to transfer into the new program at no additional charge. Until the new forms are available, Doerksen advises growers to continue to apply under the old program and then transfer their applications to the ESCAP and adjust the amount they're eligible for once approval for the new program has been received from Agriculture Agri-Food Canada (AAFC)."

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