We are pleased to announce that Agriculture and Agri Food Canada has approved Global Ag Risk Solutions (GARS) Production Cost Insurance (PCI) as an eligible security for use under the Advanced Payment Program (APP). Beginning April 1st 2017 producers can utilize the PCI policy as security when applying for cash advance with APP administrators such as the Canadian Canola Growers Association (CCGA). CCGA is currently working with GARS to establish procedures for handling GARS secured advance applications.
The development that affected this change began 3 years previous when the farming industry began asking if GARS PCI policies were eligible for a cash advance. In February 2016, there was an amendment to the Agricultural Marketing Programs Act which allowed private sector security types to be used for APP advances.
The APP program is a smart cash flow management tool and grain marketing tool. It is a very effective and worthwhile program which is widely used throughout the farming sector. GARS is very proud to have this program approved by the Federal Government. This does give producers the freedom to choose the most effective insurance for their business while remaining eligible for the Advanced Payment Program and Cash Advance from CCGA.
With the recent approvals from the Federal Government producers with a GARS policy will be eligible to apply for a Cash Advance for the 2017 season. Producers are encouraged to contact GARS and their administrator to get more details.