Program Objective

The program aims to assist eligible operations by granting them access to short-term cash flow through the payment of a repayable advance.

General Provisions

La Financière agricole can advance to eligible producers, under the conditions it sets, a repayable amount of up to 20% of the contributions calculated in a producer’s file, on December 1, 2011, for the 2011 insurance year for animal productions and for 2010-2011 for plant productions, for their participation in the Farm Income Stabilization Insurance Program (ASRA). The advance may not however exceed $30,000.

To be eligible for the advance, producers must:

• Participate in the ASRA program and have, for the 2011 insurance year for animal productions or for 2010-2011 for plant productions, an insurable volume under the program;
• Have obtained and provided to La Financière agricole the confirmation that their operation meets the eligibility criteria of :
  • the Farm Operation Adaptation Support Strategy offered by the Ministère de l’Agriculture, des Pêcheries et de l’Alimentation du Québec
    
    or
    
    
  • the Regional Farm Development Support Program for Abitibi-Témiscamingue and the operation earns at least 50% of its farm income from the productions covered by the ASRA program;
    
    

• Present the financial statements available on the date of the application;
• Have repaid to La Financière agricole any amount that may have been overpaid following the reduction in the compensation rate for the operation’s insured productions prior to the date of the application;
• Abide by the legislation and the regulation in effect regarding the phosphorus report;
• Not be registered in mediation procedures pursuant to the Farm Debt Mediation Act or be subject to collection operations by La Financière agricole or any other creditor;
• Have completed and produced a loan application by March 31, 2012.

Producers repay the advance made by La Financière agricole, interest-free until term, in four equal consecutive instalments payable on March 31 every year starting in 2013.

However, La Financière agricole reserves the right to retain, in order to pay down the advance according to the terms it sets, the annual repayable amount from any sums payable to producers under the programs it administers.

Note that the advance made to a producer could be become fully payable in any of the following cases:

• The producer no longer has any protection under the ASRA program;
• The annual repayable instalment of the advance was not fully reimbursed by the end of the fiscal period following a notice from La Financière agricole;
• After March 31, 2016.

Other Provisions

La Financière agricole assumes the cost and the risks of loss under this program.

The program comes into effect on November 18, 2011.

Application for Review

Any request for a review of a final decision rendered regarding the producer’s file must be made in writing, explaining the motives behind the request, and sent to the service centre in charge of the file or delivered in person to a representative of La Financière agricole within ninety (90) days from the date of the decision in question.

This program summary in no way takes precedence over the provisions of the Program or of any policy of La Financière agricole.