Preamble: Important Information for Producers Sample Clauses

Preamble: Important Information for Producers. The following is provided as background information for producers. Advance Payments Program • The Advance Payments Program (“APP”) is established under Canada’s Agricultural Marketing Programs Act, the Regulations under this Act, and APP Administration Guidelines and policy bulletins issues by Agricultural and Agri-Food Canada. • Western Cash Advance Program Inc. (“WeCAP”) is an authorized APP Administrator. Cash Advance Limits • The APP allows eligible producers to obtain cash advances for a portion of the expected average market value of their commodities. After May 29, 2019 Advances to producers are limited to a maximum of $1,000,000.00 in each Program Year, with the Federal Government paying the Interest on the first $100,000.00 of the advance and preferential Interest rates on advance amounts over $100,000.00. Eligible producers can take advances on multiple agricultural producers within the same Program Year; however, producers cannot have more than $1,000,000.00 in advances outstanding at any one time under the Program. Eligibility • APP eligibility is limited to Canadian citizens or permanent residents; corporations, a majority of whose voting shares are held by Canadian citizens or permanent residents; cooperatives, a majority of whose members are Canadian citizens or permanent residents, and partnerships or other associations of persons where partners or members, who are Canadian citizens or permanent residents, are entitled to at least 50% of the profits of the partnership or association. Some other limits on eligibility apply, including limits for producers are “Related Producers” as defined by the APP. Production Periods and Production Years • Under APP, “production periods” and “production years” are established for different agricultural products. Advances may be issued on an agricultural production from the start of production. Production periods and production years may overlap, provided that producers may not have any more than $1,000,000.00 outstanding under the Program at any time. Repayment • Repayment must be made by producers as they sell or dispose of the commodities upon which their advances were based. Proof of sale showing the type and volume of profits sold and the amount paid must accompany each payment. In addition, final deadlines must be met for the repayment of all advances. Producer repayment obligations are set out in the repayment.