|By Marketwired .||
|July 16, 2014 05:59 PM EDT||
OTTAWA, ONTARIO -- (Marketwired) -- 07/16/14 -- Agriculture and Agri-Food Canada
Canada's mink producers facing financial challenges as they adjust to a dramatic shift in the world mink market have been granted more time to repay cash advances under the Advance Payments Program (APP). Agriculture Minister Gerry Ritz today announced a national Stay of Default for mink producers who have a 2013 APP cash advance on mink pelts issued through the Agri-Commodity Management Association (ACMA), the PEI Federation of Agriculture, the Canada Mink Breeders Association, the Newfoundland and Labrador Federation of Agriculture, and the Fur Farmers of Canada Marketing Association.
Mink producers now have until June 1, 2015 to repay their 2013 advance in full. The Stay of Default was granted at the request of the APP administrators to provide producers with an additional eight months to sell their pelts and to repay their outstanding APP advances. Producers will also have the option to repay their APP advances in cash without penalty and at a lower rate than the original APP advance rate, to reflect the decline in prices.
Producers who received an APP advance on milk pelts for the 2013 production period are eligible for the Stay of Default and are encouraged to contact their APP program administrator for more details.
-- The price of mink fur has dropped significantly this past year. As a result, mink producers may be unable to repay their APP advances by the September 30, 2014 deadline. -- The APP is a financial loan guarantee program that provides producers easier access to credit through cash advances. Under the APP, producers can receive cash advances of up to $400,000 on the value of their agricultural product, of which the first $100,000 in each production year is interest free. The deadline to repay APP advances for the 2013 production period has now been extended to June 1, 2015. -- Canada was home to 233 mink farms in 2012, up from 224 in 2008. Farm cash receipts from the sales of furs (including both fox and mink) in Canada amounted to almost $248 million in 2013, up from almost $92 million in 2008. (Statistics Canada)
"This stay of default will alleviate some of the pressures Canada's mink producers currently face giving them more time to sell their pelts, increase their cash flow, and contribute to our economy."
- Agriculture Minister Gerry Ritz
"The extra eight-month extension to make repayment will ease a lot of the current cash flow pressure, allowing ranchers to get their current pelt crop to market in the winter and spring."
- Brad McCallum, Executive Director, Agri-Commodity Management Association
Director of Communications
Office of the Honourable Gerry Ritz
Agriculture and Agri-Food Canada
Follow us on Twitter: @AAFC_Canada
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