CDN Bison Association - 2017 AGM CALA - “Establish, Expand, Innovate” APP - “Improve your Profitability and Cash Flow”

CALA Program Establish Expand Innovate Buy an existing operation Taking over the family farm Expand Land, buildings Breeding Animals, no branding required Innovate Equipment, Machinery, Implements

CALA Program Who is Eligible Loan Amounts Fees Established farmers Beginning/Start-up farmers (i.e. less than 6 years of farming) Agricultural co-operatives Loan Amounts Currently $500,000 max Up to $500,000 for land and buildings Up to $350,000 for all other purposes Fees .25% application fee .85% loan registration fee

CALA Program Why CALA Where to apply Competitive Interest Rates Fixed or Variable Financing Incentives for Beginning farmers Flexible repayment terms; and Backed by the Government of Canada Where to apply Banks Credit Unions

The Advance Payments Program (APP) Get a Cash Advance for up to $400,000: First $100,000 @ 0% (Federal Gov’t pays the interest) Remaining $300,000 is at preferential interest rates (usually prime)

The Advance Payments Program (APP) Get Cash Advances on: Bison and other livestock Grains & other commodities Get Interest Rebates on: Bison Feeder Loans Get Bison Cash Advances from: APP Administrators Manitoba Livestock Cash Advance SkMinAg (interest rebate only) Canadian Canola Growers Association

The Advance Payments Program (APP) Repay your advance As you sell your product; BUT Sell by the end of the production period 24 months for bison 18 months for all else (e.g. crops) Eligibility Canadian farmer; OR Farming corporation, cooperative or partnership

The Advance Payments Program (APP) ALL Cash advances MUST be secured For Bison advances Enrollment in an appropriate BRM program e.g. AgriStability No security required for Feeder Loan interest rebates

Agricultural Loan Programs – APP

Agricultural Loan Programs – APP

The Advance Payments Program (APP) Cash Advances - Improve your Profitability 165 Fed Bison x $1700/head = $280,000 loan $100,000 is Interest Free $180,000 is Interest Bearing for 24 months @ 3.2% (prime) Annualized Interest Cost, APP = $ 5,760 Annualized Interest Cost, LOC @ 6% = $ 16,800 Annualized interest rate on $280,000 = 2.06% Cash Advance Interest Savings = $ 11,040 Financing Costs Reduced = $66.90/per head

The Advance Payments Program (APP) Why Cash Advances Lower interest rates and financing costs Improves profitability Improves cash flow Marketing Flexibility Sell when you want : repay as you sell Don’t have to do anything extra : Just apply!

Agricultural Loan Programs – APP & CALA For more information Visit the APP website at www.agr.gc.ca/app Visit the CALA website at www.agr.gc.ca/cala Call the toll-free line at 1-866-367-8506 Use our Generic email: fgp-pgf@agr.gc.ca

Agricultural Loan Programs – APP & CALA Questions??? See me at the booth