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Cash advance rates rise for Man. special crops

Corn, pulse and sunflower producers in Manitoba can get a better cash advance this fall on the same yield due to the rise in commodity prices since last fall.

Eligible farmer-members of the Manitoba Corn Growers Association, Manitoba Pulse Growers Association or National Sunflower Association of Canada can now apply for post-production cash advances, the groups said in a release Wednesday.

Eligible farmers are those who haven’t asked for a refund of their checkoff within the last 24 months, the groups said.
The rates available for the 2008 post-production period are “significantly higher” than those in 2007, the group said. For example the 2008 post-production payment for corn is $2.99 per bushel, up from $1.91 last year. For confectionary sunflowers, the 2008 rate is 16 cents per pound, up from 10.5 cents in 2007. And the rate for navy beans is 20 cents per pound, up from 12.5 cents last year.

As ag input prices continue to rise, the post-production cash advances “may allow growers to avoid traditional spring increases by providing cash flow during the fall time frame,” said MCGA secretary-manager Theresa Bergsma in the group’s release.

Furthermore, “by gaining access to cash flow via a fall cash advance, farmers may be able to take advantage of
marketing opportunities during these volatile times,” said NSAC executive director Darcelle Mabon in the same release.

MCGA administers the federally-funded advance payment program on
corn, all classes of dry beans, confectionary and oil sunflowers, soybeans, peas, lentils, chickpeas, annual rye grass seed, hay for domestic sales, alfalfa seed and perennial rye grass seed.

The deadline for Manitoba farmers to apply for a post-production advance is March 16, 2009, and the repayment deadline is Sept. 15, 2009. Application forms are available online.

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