New Brunswick potato producers affected by cold and wet weather in 2011 will have more time to repay their advances under the Advance Payments Program (APP). Tobique-Mactaquac Member of Parliament Mike Allen, on behalf of Agriculture Minister Gerry Ritz, today announced a Stay of Default until December 31, 2012 on the repayment of advances for potato producers in New Brunswick following a poor 2011 crop year.
"New Brunswick potato producers have worked hard to recover from this year's cold and wet conditions which have severely reduced their crop yields and caused high storage losses," said MP Allen. "Potatoes New Brunswick (PNB) asked that producers be granted more time to meet their financial obligations, and we're pleased to provide it as we work together to manage through what has been and continues to be a very difficult time for the industry."
Farmers will be able to transfer their outstanding 2011 advances to the 2012 production period and avoid default. The Government of Canada will continue to pay interest on the interest-free portion of farmers' outstanding advances until December 31, 2012. Producers who received a 2011-2012 APP advance and may be in an overpayment position should contact Potatoes New Brunswick for more information.
The Advance Payments Program provides producers with a cash advance on the value of their agricultural products during a specified period. The short-term loans improve cash flow throughout the year and help crop and livestock producers meet their financial obligations and market their products when market conditions are favourable.