Report to Parliament

If a producer defaults on their advance and is unable to repay the defaulted advance to the administrator, the Government repays the outstanding debt to the lender on the producer’s behalf, after which the producer is indebted to the federal government in the amount of the debt (i.e., debt to the Crown). [...] According to the producer survey, the IF portion continues to be the most beneficial element of the APP with the IF portion providing up to $7,000 in savings to producers in interest compared to a traditional loan9. [...] 5.1.3 Alignment with Program Objectives As stated in the AMPA, the purpose of the APP is to improve the marketing opportunities of participating producers through the provision of cash advances. [...] The uniqueness of the program may not only be attributed to the product being offered by the program, but also to the method of delivery. [...] One of the principal reasons is that should a producer be unable to repay the defaulted advance to the administrator, the Government repays the outstanding debt to the lender on the producer’s behalf.